(Source: Reuters By Jonathan Stempel) – The insurer AIG is suing Bank of America Corp to recover more than $10 billion of losses from a “massive fraud” on mortgage debt, deepening the morass of litigation faced by the largest U.S. bank.American International Group Inc, still largely owned by taxpayers after $182.3 billion of government bailouts, is the latest of a growing number of investors filing lawsuits to hold banks responsible for losses on soured mortgages that contributed to the financial crisis.
The AIG complaint accuses Bank of America and its Countrywide and Merrill Lynch units of misrepresenting the quality of mortgages placed in securities and sold to investors. AIG said it suffered its losses on $28 billion of investments.
Source: Reuters By Jonathan Stempel
Mon Aug 8, 2011 10:16am EDT
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