"Asia Pacific Group" - AIG Warned of Armageddon

New York, NY (PressExposure) March 18, 2009 -- "Asia Pacific Group", the Asian-based wealth management firm reportedly agrees with suggestions that the banking system would have faced collapse for the second time in 6 months had the US government not stepped up to bail out the company for a fourth time less than 2 weeks ago.

"Asia Pacific Group" spokesperson said that although it was unlikely the US government would have allowed the insurer to fail, AIG had felt it necessary to depict a catastrophic scenario if another $30 billion of funding was not forthcoming.

The specter of further bank write downs and the consequential capital raising that would have been necessary both in the US and around the world could have caused a lock up in the system meaning ordinary people being unable to access funds from ATMs or branches.

"Asia Pacific Group" believe that although intervention by the world's governments have reduced this eventuality considerably, systemic risks were still in play and just one major collapse could force governments into wholesale nationalization of the world's banks.

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Press Release Submitted On: March 16, 2009 at 1:05 am
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