The American International Group is suing Bank of America over losses taken from mortgage-backed securities , The New York Times reports. A.I.G. is asking for a little more than a third of what they invested into Bank of America and its Merrill Lynch and Countrywide Financial units, which works out to $10 billion over investments of $28 billion. The suit claims Bank of America "misrepresented the quality of the mortgages placed in securities and sold to investors," according to a Times source. A.I.G. isn't stopping after suing Bank of America either. They're also preparing suits against Goldman Sachs, JPMorgan Chase, and Deutsche Bank as part of a wider "litigation strategy" that hopes to recover billions in losses the now taxpayer-owned company sustained during the recession. There are at least 90 lawsuits over mortgage bonds right now asking for around $197 billion to change hands, according to an analyst who spoke to The Times. A.I.G. is expected to formally file the complaint to the New York Supreme Court on Monday.
This article is from the archive of our partner The Wire.