AIG Is Suing Bank of America for $10 Billion

AIG claims they were duped into investing in mortgage backed securities

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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.

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