AIG (AIG) to File Multibillion MBS Suit Against BofA (BAC)
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American International Group (NYSE: AIG) is taking up a lawsuit in the recent ring of mortgage-backed securities litigation.
According to reports Monday morning, AIG is aiming to sue Bank of America (NYSE: BAC) for roughly $10 billion, alleging misrepresentation of the quality of the mortgages placed in securities sold to investors.
Though $10 billion seems extreme, it's less than half of the $28 billion lost on MBS investments by AIG.
The New York Times said AIG is also planning similar suits against Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), and Deutsche Bank (NYSE: DB).
Bank of America is likely to dispute the claim, saying disclosures were "robust" enough for sophisticated investors.
AIG will file to intervene in the $8.5 billion settlement between Bank of America and Bank of New York (NYSE: BK). AIG will say the settlement is too low, and Bank of New York was "rife with conflicts," according to the NY Times.
AIG is 4.3 percent lower early Monday, while Bank of America is nearly 6 percent lower.
According to reports Monday morning, AIG is aiming to sue Bank of America (NYSE: BAC) for roughly $10 billion, alleging misrepresentation of the quality of the mortgages placed in securities sold to investors.
Though $10 billion seems extreme, it's less than half of the $28 billion lost on MBS investments by AIG.
The New York Times said AIG is also planning similar suits against Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), and Deutsche Bank (NYSE: DB).
Bank of America is likely to dispute the claim, saying disclosures were "robust" enough for sophisticated investors.
AIG will file to intervene in the $8.5 billion settlement between Bank of America and Bank of New York (NYSE: BK). AIG will say the settlement is too low, and Bank of New York was "rife with conflicts," according to the NY Times.
AIG is 4.3 percent lower early Monday, while Bank of America is nearly 6 percent lower.
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