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Old 29-09-2008, 09:42 PM
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Yep... that's because if AIG went then we would get a complete global economic collapse. AIG insures all the bank's loans. If the banks didn't have insurance on their loans and people defaulted on their mortgages then the banks would be forced in bankruptcy. Banks everywhere would shut down....

Also, Banks in Europe have major share holdings in American banks, if they lose them then it would spell major trouble for them over here...

Luckily for us, the Government said they would protect any domestic bank in Ireland. I'd say AIB are happy to hear that considering their shares fell 44% today.
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