Chris Whalen and Paul Miller discuss the health of the banking sector, deleveraging, credit destruction and new capital requirements with Burnett. Near the end, the focus shifts to Goldman Sachs, where Whalen says their future is bright without Lehman and Bear Stearns as competitors, but cautions about the massive political risk:
- "The political risk is the wildcard with that firm. They are so over-exposed politically. There's nobody even in their league right now in terms of political risk."
The interplay ends and as they head to break, Erin Burnett mumbles the following to co-anchor Kristi Yamaguchi:
- "The AIG payback, the $13.2 billion...it's just there. People, it just raises questions."
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A rare, CNBC-induced Bailout Hallelujah...!