Silver: Bank Failures Will Cause Ripple Effect
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
BUFFALO, N.Y. — Assembly Speaker Silver warned that the historic failures on Wall Street will make it hard for the rest of the state to fund essential infrastructure projects and schools. While the bailout of AIG was a relief, he said, a diminished Wall Street poses “monumental” economic challenges for the state. “As we go forward we know that the housing and financial markets continue to deteriorate. More writedowns and layoffs for financial firms are going to follow,” Mr. Silver told members of the Business Council of New York State. “It’s going to lead to is lower wages, lower employment growth rates and probably a readjustment in every prediction we have made for the coming state fiscal year.
