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.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.