NY gov sees Wall St losing up to 40,000 jobs

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http://news.yahoo.com/s/nm/20080915/us_nm/newyork_jobs_dc


New York Gov. David Paterson on Monday said Wall Street might lay off 40,000 workers in a worst-case scenario following Lehman Brother's bankruptcy filing and problems at other big financial firms.

Paterson, speaking a news conference where he also noted the impact of Bank of America's surprise agreement to purchase Merrill Lynch and problems threatening insurer American International Group, said the impact of the financial sector's downturn may not be known for months or even years.

The Democratic governor at the news conference also announced plans to aid American International Group, allowing the insurer access to $20 billion of its own capital, staving off a liquidity crisis.

Paterson, who said he would not put any taxpayer dollars at risk, said his efforts to shore up AIG focused on clearing the way for the New York-regulated company to shift money to its parent company from its insurance subsidiaries. The transaction will serve as a bridge loan.

Paterson blamed the lack of transparency in credit markets for the financial sector's meltdown, saying many transactions were "beyond the perusal" of regulators.