AIG, Countrywide File Competing Fraud Suits

Law360, New York (March 20, 2009, 12:00 AM EDT) -- Former mortgage giant Countrywide Bank FSB and a mortgage-insurance subsidiary of American International Group Inc. have hit one another with separate lawsuits relating to hundreds of millions of dollars in insurance policies Countrywide took out with the AIG unit on risky mortgage loans.

Both AIG's United Guaranty Mortgage Indemnity Co. and Countrywide, which was purchased by Bank of America in January 2008, filed suits alleging breach of contract in separate courts on Thursday, each leveling blame at the other for financial problems stemming from defaults on...
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