AIG Credit Rating Cut Triggers Mad Dash for Cash

Insurance giant AIG teetered on the brink of catastrophe last night as ratings agencies downgraded the beleaguered firm's credit ratings, forcing it to raise $14.5 billion to meet debt obligations, reports the Wall Street Journal. Federal Reserve officials were holding emergency talks with Goldman Sachs and JPMorgan Chase in an effort to assemble a $75 billion line of credit to avert a crisis.

If the firm doesn't secure financing by tomorrow, it may be forced to declare bankruptcy. "The situation is dire," said a source close to AIG. The latest financial disaster if bound to exacerbate a mounting worldwide economic calamity, and severely tests government abilities to contain it.
(More AIG stories.)