AIG Strengthens Hand In $10B BofA MBS Suit

Law360, New York (March 29, 2013, 2:11 PM EDT) -- American International Group Inc. strengthened its $10 billion mortgage-backed securities suit against Bank of America Corp. when a federal banking regulator backpedaled in testimony released Thursday on earlier statements that AIG had surrendered its litigation rights during its massive government bailout.

AIG, which the federal government rescued with a $182 billion bailout in 2008, has been pursuing claims that Bank of America's Countrywide Financial Corp. and Merrill Lynch & Co. Inc. units sold it faulty mortgage-securities prior to the financial crisis. Bank of America has countered...
To view the full article, register now.