AIG (AIG) Questions $8.5B Settlement in MBS Case with BofA (BAC), Countrywide
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American International Group (NYSE: AIG) thinks $8.5 billion isn't a large enough sum to settle being swindled.
AIG and a number of entities are arguing against the settlement with Bank of America (NYSE: BAC) and its Countrywide unit. The group originally asked for $50 billion stemming from a case over allegations of being mislead in the purchase of mortgage-backed securities (MBS).
A lawyer for AIG argued whether or not the lower settlement amount stems from BofA's relationship with BlackRock (NYSE: BLK), a supporter of the settlement, and Bank of New York (NYSE: BK), which is trustee for 530 trusts holding the securities in question, Reuters noted today.
Justice Barbara Kapnick in New York state court is hearing the case, which will resume Thursday following a recess today.
BofA rescued Countrywide in 2009 following the financial markets meltdown, agreeing to the MBS settlement in 2011.
Shares of AIG and BofA are lower in early trading Wednesday.
AIG and a number of entities are arguing against the settlement with Bank of America (NYSE: BAC) and its Countrywide unit. The group originally asked for $50 billion stemming from a case over allegations of being mislead in the purchase of mortgage-backed securities (MBS).
A lawyer for AIG argued whether or not the lower settlement amount stems from BofA's relationship with BlackRock (NYSE: BLK), a supporter of the settlement, and Bank of New York (NYSE: BK), which is trustee for 530 trusts holding the securities in question, Reuters noted today.
Justice Barbara Kapnick in New York state court is hearing the case, which will resume Thursday following a recess today.
BofA rescued Countrywide in 2009 following the financial markets meltdown, agreeing to the MBS settlement in 2011.
Shares of AIG and BofA are lower in early trading Wednesday.
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