BofA Can't Shake AIG's $10.5B Countrywide RMBS Suit

Law360, New York (May 7, 2013, 5:00 PM EDT) -- A California federal judge on Monday said American International Group Inc. can move forward with its $10.5 billion lawsuit accusing Bank of America Corp.'s Countrywide Financial Corp. of lying about the quality of residential mortgage-backed securities it sold to the insurer, tossing Bank of America's jurisdictional challenge.

AIG, which the federal government rescued with a $182 billion bailout in 2008, has been pursuing claims alleging Bank of America's Countrywide and Merrill Lynch & Co. Inc. units sold it faulty mortgage-securities prior to the financial crisis. Bank...
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