AIG Urges 2nd Circ. To Remand $10B BofA RMBS Suit

Law360, New York (October 19, 2012, 5:15 PM EDT) -- American International Group Inc. on Friday asked the Second Circuit to transfer a lawsuit over $10 billion in Bank of America NA residential mortgage-backed securities back to state court, arguing that federal jurisdiction was misapplied in the case.

The federal Edge Act, which gives federal courts jurisdiction over bank lawsuits involving transactions overseas or in U.S. territories, does not apply to AIG's suit alleging BofA lied about the viability mortgages bundled into RMBS, AIG's lawyer said at oral arguments before a three-judge panel.

BofA only obtained...
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