Video

AIG, thrown a $20 billion lifeline by New York State, is under renewed pressure as ratings agencies downgraded the insurer's debt. AIG, once one of the world's biggest insurers, holds the debt insurance of asset managers and hedge funds around the world. David Buik of BCG Partners is certain it will find the further $20 billion it needs liquidity in the next few days because he says its collapse would spell disaster. SOUNDBITE, BC PARTNERS, DAVID BUIK SAYING (ENGLISH): "Everybody tries to say to the man on the street the problems with Lehman brothers and AIG has nothing to do with me gov. I'm a plasterer, I'm a builder. Whatever you do, believe me it has everything to do with you. Because if the banks lose so much more money than they already have lost their share value goes down. The amount of capital they've got available is less, the amount of money they'll lend for proper ordinary consumer requirements will disappear; mortgages will disappear therefore there will be no retail business in the shops, therefore unemployment will go up and therefore recession will be deep. This is unthinkable and unacceptable, therefore it has to be dealt with." Meanwhile, British bank Barclay's is in talks to buy many of Lehman's core investment bank operations, a deal that could save thousands of jobs. On Monday Lehman workers cleared their desks in London and New York after bailout talks failed and the company filed for bankruptcy. Buik believes this is encouraging and expects other assets of Lehmans to be bought. SOUNDBITE, BC PARTNERS, DAVID BUIK SAYING (ENGLISH): "I suspect that Barclays are in no hurry. I mean that Bob Diamond and his management team from Barclay's Capital, which has been a contributor of 40 percent of Barclays profits over the year will know exactly how many beans make four and he'll know exactly what he wants." Encouraging though it is, Buik warns Barclays and others will be striving to do a hard deal and looking for value for money. Stefanie McIntyre, Reuters