Bloomberg: City Can Handle Wall Street Crisis

Mayor Bloomberg says New York is well-positioned to handle the crisis on Wall Street, but that it won't be an easy task.

The mayor spoke at a City Hall news conference where he discussed the fallout from the demise of Lehman Brothers and Merrill Lynch.

He said that Lehman Brothers employs 12,000 people who live in the New York area. He called it "sad day" to see such a venerable institution close its doors.

Governor Paterson earlier said that the state is providing assistance to insurer American International Group Inc. to help the troubled company shore up its finances.

Wall Street makes up one-fifth of the state's economy, and investment banking problems create havoc statewide.