04:43
societynews[dot] org
(Reuters)-U.S. insurance giant American International Group (AIG.N) is planning to sue Bank of America (BAC.N) to recover more than 10 billion dollars in losses over 28 billion dollars in investments in mortgage-backed securities, the New York Times said, citing three people with knowledge of the complaint.
AIG's move adds the soaring investors seeking compensation for troubled loans that led to the financial crisis, the Times said.
The complaint alleges that Bank of America, together with his unit, Merrill Lynch and Countrywide Financial misrepresented the quality of mortgages into securities and sold to investors, the newspaper reported.
Bank of America is likely to dispute claims in suit, that AIG should be presented on Monday in New York State Supreme Court, the paper said.
Bank of America spokesman Lawrence Di Rita said NY Times that the revelations of mortgage securities were quite strong for sophisticated investors. Many of the lost value because loans fell said.
"Now you have a lot of investors and lawyers who are trying to recover losses from an economic crisis," Rita told the paper. The Bank hasn't seen dressed in AIG, NY Times said.
An AIG spokesman declined to comment on the paper. Bank of America and AIG could not immediately be reached for comment by Reuters.
(Reporting by doing nothing Prasad in Bangalore; Editing by Hans-Juergen Peters)
Posted in: 
0 comments:
Post a Comment