AIG shares fall

Shares of Manchester United sponsor American International Group nosedived on Wall Street today as US investors questioned whether the huge insurer would come up with more money and avoid igniting even more global financial turmoil.

AIG is looking for financing to help stave off a liquidity shortfall.

The New York Fed is involved in talks regarding AIG, according to a person with knowledge of the matter.

US Treasury spokeswoman Brookly McLaughlin said officials remained focused on market developments but she refused to comment on the report.

AIG shares were down $2.07, or 43%, to $2.69 trading today, rebounding from a low of $1.25 earlier in the day but below the day’s high of $4.57.