Insurance Giant AIG Will Reportedly File A $10 billion Lawsuit Against Bank Of America.
The New York Times reports that AIG will file the suit against Bank of America in New York today. AIG wants to recover some of the losses related to bad mortgages it bought during the housing boom. According to the paper, AIG contends that Bank of America and its companies Countrywide Financial and Merrill Lynch, overstated the quality of those mortgages that were packaged as securities. The suit covers nearly $30 billion in mortgages. It comes after Bank of America agreed to a similar $8.5 billion settlement with investors in June. The Times reports that AIG is also preparing to file lawsuits against several other big financial companies, including JP Morgan Chase and Goldman Sachs.