AIG Sues Bank Of America For $10 Billion Over 'Massive Mortgage Fraud'

(Reuters) - The insurer American International Group Inc (AIG:nyse) is suing Bank of America Corp (BAC:nyse) 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.

AIG, still largely owned by taxpayers after $182.3 billion of government bailouts, is the latest of a growing number of investors filing lawsuits seeking to hold banks responsible for losses on troubled mortgages that contributed to the financial crisis.

The AIG complaint, being filed in the New York State Supreme Court in Manhattan, accuses Bank of America and its Countrywide and Merrill Lynch units of misrepresenting the quality of mortgages placed in securities and sold to investors.

Reuters obtained a copy of the complaint.  AIG is preparing similar lawsuits against other large banks.

Continue reading at Reuters...

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Here's the lawsuit.

AIG versus BAC 8-8-2011

Update on Aug 8, 2011 at 12:35 PM by DailyBail

BAC now trading down 17%.  Copy of AIG lawsuit added.

Comments

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