AIG Searching for Cash Infusion

Shares of American International Group, or AIG (AIG 12.14), are trading sharply lower in premarket action.  The Dow component and financial behemoth has already seen its stock fall nearly 80% this year.

Early morning participants began dumping the stock as word circulated that the firm is in dire need of capital.  Without adequate capital AIG could face a downgrade by credit rating agencies. 

AIG actually refused an infusion from a group of private equity firms, led by J.C. Flowers, since the move would have given the firms control of AIG for a fraction of its current market value.  Instead, AIG is selling assets and even reaching out to the Federal Reserve to raise cash, according to The Wall Street Journal.