Ruling Clears Way for A.I.G. Suit Against Bank of America


Ruling Clears Way for A.I.G. Suit Against Bank of America

A California judge has opened the door for the American International Group to pursue a fraud claim of more than $7 billion against Bank of America for losses it suffered on mortgage securities sold under duress after the federal government rescued A.I.G. in 2008.

The ruling, issued late Monday, is a setback for Bank of America, which has been trying to rid itself of numerous legal claims from investors who bought mortgage securities issued by the bank’s Countrywide Financial and Merrill Lynch units. In the California case, in which A.I.G., the giant insurance company, sued Bank of America over fraudulent mortgage securities, the bank had argued that A.I.G. had no standing to sue because it had transferred that right when it sold the instruments to the Federal Reserve Bank of New York in the fall of 2008.

Mariana R. Pfaelzer, a federal judge in the central district of California, disagreed. She sided with A.I.G. in a ruling that also raised questions about the role of the Federal Reserve Bank of New York in the wake of its efforts to contain the huge damage from the financial crisis that erupted when Lehman Brothers was forced into bankruptcy in September 2008.

A.I.G. said in a statement, “As a result of the court’s decision, AIG is able to pursue its full damages claim against Bank of America.”

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One Response to “Ruling Clears Way for A.I.G. Suit Against Bank of America”
  1. Rebecca says:

    I first said annanimitty ? Not saying my name or my sons names.
    Well what if I was to agree to it today?
    Would this help me with this wrongfully Foreclosures Americans were done and not ever getting the justice served as they said how many months ago?? This is wrong
    There’s another thing only I’m unsure how to spell say. How they say that banks are not doing their parts compensation. Their right I agree but why did they email me saying that they can not help me. They only help Americans who are in foreclosure process now. Not already been foreclosued. Then why do they now to say unless they are fighting for who ever they did and they lost. Still its strange to me.
    I need help a lawyer. I can’t understand nor know what I’m to keep doing. Plus I’m displaced lost lonely. I’m only out here alone. No place person who understands cares I have no place to go feel home safe. At 55. Women. Sorry its screwed up
    And now my heads getting messed with why? Why honestly why what do they want ill tell the right person the truth everything I know not lie
    No one ever asked me dam it this upsets me yes pisses me off

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