AIG's $10B BofA Suit Belongs In State Court, 2nd Circ. Told

Law360, New York (September 17, 2012, 4:51 PM EDT) -- American International Group Inc. on Friday told the Second Circuit that Bank of America Corp. misinterpreted the Edge Act to an "absurd" extent by trying to have a $10 billion mortgage-backed-securities suit litigated in federal court, saying the case should be heard in state court because the RMBS certificates originated in New York.

In a reply brief, the insurance company rejected Bank of America's Edge Act interpretation, saying that only a miniscule number of underlying mortgages originated outside the territorial United States. AIG said the question...
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