BOFA's Lewis: All Major Banks Exposed To AIG (AIG)

As the next Wall Street disaster lurches toward zero, Bank of America’s CEO Ken Lewis acknowledges on CNBC that an AIG failure could be disastrous:

“I don’t know of any major bank that doesn’t have exposure to AIG,” he said.

So does this mean the Fed is going to give AIG the $40 billion bridge loan it needs? Let’s hope not.

The market’s relatively muted reaction to the Lehman bankruptcy shows that Chapter 11 works. There is no panic. There hasn’t even been a market crash. 

AIG is important, but the government was wise to draw the line in the sand.

See Also: AIG: We Need $40 Billion Right Now, Or We’re Toast

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.