Bailout Terms Kill AIG's $11B MBS Suit, BofA Says

Law360, Los Angeles (January 29, 2013, 5:49 PM EST) -- Bank of America Corp. asked a California federal judge Tuesday to throw out American International Group Inc.'s $10.5 billion lawsuit accusing the bank of lying about the quality of mortgage-backed securities it sold the insurer, saying the terms of AIG’s 2008 federal government bailout barred its securities law claims.

At a Tuesday hearing, Richard C. St. John, a lawyer representing Bank of America, argued that AIG should not be allowed to go beyond the terms of its bailout to recoup money it lost by purchasing the...
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