Monday, August 8, 2011

AIG sues Bank of America for $10 billion over mortgages

American International Group said Monday it sued Bank of America for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued.

Bank of America (BAC) denied the allegations, saying AIG(AIG) "recklessly" chased investments with high returns, and was big and sophisticated enough to know the risks.

Banks have been hit by a series of suits over misrepresentations of mortgage-based securities.

Read the rest of the article at USA Today

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