Morgan Stanley Says AIG May Sue Over Mortgage-Linked Investments
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Morgan Stanley, the sixth-largest U.S. bank by assets, said it may be sued by American International Group Inc. over mortgage-backed securities that the insurer purchased before the financial crisis.
AIG bought $3.7 billion in mortgage pass-through certificates that were sponsored or underwritten by Morgan Stanley in 2005 through 2007, the New York-based investment bank said yesterday in a regulatory filing. AIG terminated an agreement that had given it more time to bring claims, and the pact will end Nov. 7, according to the filing.