U.S. Official says Extremist Groups are 'Very Much Alive' in Iraq

Though weakened by the deaths of top leaders and a drop-off in foreign funding, al-Qaeda in Iraq's "cellular structure" remains "pretty much intact," Brig. Gen. Patrick M. Higgins said in his first interview since taking command in Baghdad last fall.

Members of al-Qaeda in Iraq have increasingly resorted to kidnapping and extortion to stay afloat, the general said.

"The line between terrorism and criminality has blurred so much that some of these guys are just outsourcing," Higgins said Saturday. "We've seen indications that some of these guys for a price will put together a [roadside bomb] or do an assassination."

Although al-Qaeda in Iraq no longer appears capable of carrying out the type of massive bombings that targeted prominent government buildings last year, the Sunni extremist organization and other groups continue to conduct attacks almost daily.