AIG Sues Bank of America Over $10 Billion in Mortgage Losses
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American International Group Inc., the bailed-out insurer, sued Bank of America Corp. over $10 billion in losses on mortgage-bond investments, saying it was the victim of a “massive fraud.”
Bank of America and businesses it took over -- Countrywide Financial Corp. and Merrill Lynch & Co. -- misled AIG as they sought to profit off the bundling of mortgages into securities, the insurer said in a complaint filed today in New York State Supreme Court.