Bank of America sued by AIG
Aug 09, 2011
NEW YORK (Associated Press) -- American International Group Inc. said Monday it sued Bank of America Corp. for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued....
In June, Bank of America agreed to pay $8.5 billion to a group of investors for selling them poor-quality mortgage securities. AIG's suit is separate, but the company is raising questions about whether the settlement went far enough. On Friday, New York Attorney General Eric Schneiderman urged the judge to reject the settlement, calling it unfair.
Recall that after Lehman Brothers filed for bankruptcy on Sept. 15, 2008, three days later, AIG was bailed out by the Fed at the cost of $85 billion. That occurred Sept. 18, 2008.
It often takes a few years of investigations before charges are filed in such big financial cases.
Dr. Stephen Jones