Insurer failure riskier than bank: IMF spokesman

WASHINGTON (Reuters) - The world financial system was more vulnerable to the collapse of a major insurer like American International Group (AIG) rather than a big investment bank, the International Monetary Fund said on Thursday.

IMF spokesman David Hawley told a regular news briefing that authorities should seek market-friendly solutions in the current market turmoil that would encourage a turnaround in investor sentiment.

In Russia, where bourses ceased trading as the market went into a tailspin, there were sufficient buffers to deal with the crisis and the overall economy remained strong, he added.

(Reporting by Lesley Wroughton, Editing by Chizu Nomiyama)