American International Group, which narrowly escaped financial collapse this week, on Thursday said it had named Edward Liddy as chairman and chief executive.

Former Allstate CEO Edward Liddy will be the new CEO of AIG, which was rescued by an $85 billion loan from the Fed, in exchange for an 79.9% stake in itself.

Shares of American International Group fell almost 30 percent on Friday as investors grew increasingly concerned that its large exposure to mortgages is backing it into a corner.

American International Group, which is seeking up to $40 billion in bridge financing from the Federal Reserve, is no longer in talks to receive help from billionaire investor Warren Buffett, CNBC has learned.

American International Group, the world's largest insurer, may have to raise more capital to bolster its balance sheet if its credit ratings are cut again, Goldman Sachs analyst Tom Cholnoky said in a note to clients.

American International Group reported a quarterly loss of 51 cents a share, falling far short of analysts' estimates, which had projected a profit for the company.