AiG Goin DOWN..

Monday its direct exposure to Lehman Brothers is insignificant, but its customers may be affected through its sale of financial products.


"Some investment products DBS sold in the past have Lehman exposure. However the global economic situation has changed dramatically and this has impacted the value of these investments," DBS said in a statement.

"Our priority now is to ensure that our customers are well-informed of the latest market developments," it said.

United Overseas Bank , Singapore's No. 2 lender, said on Monday it has a very small exposure to Lehman, while Singapore's central bank said the city-state's money and financial markets were still functioning in an orderly fashion after the U.S. investment bank's collapse.





Shares fell 70 percent to 1.31 dollars a day after a plunge of over 60 percent.

"This is, of course, just the latest quake on the Wall Street fault line -- this one coming on the same day the market was digesting, with a lot of indigestion, the demise of Lehman Brothers and the take-over of Merrill Lynch by Bank of America," said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co.

"But many fear a fall of AIG would be more catastrophic than anything with which the market's yet had to cope. As I noted yesterday, the massive size of AIG's balance sheet and relationships with bank and other financial counterparties, suggests systemic risk beyond Lehman's."