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A new twist in the legal battle between AIG and BAC as a judge rules the insurer did not give up...

A new twist in the legal battle between AIG and BAC as a judge rules the insurer did not give up its right to sue BofA over $7B in MBS-related losses even though it unloaded the paper as part of its bailout. The FRBNY has already settled with BofA over MBS its Maiden Lane II took in from AIG as part of the rescue.
Comments (14)
  • my opinion this a shakedown, i will never buy an AIG product.
    7 May 2013, 01:33 PM Reply Like
  • how does AIG get to sue over paper that it does not own?
    7 May 2013, 01:38 PM Reply Like
  • The right to sue didn't transfer with the assets, for some strange reason.
    7 May 2013, 02:18 PM Reply Like
  • Makes sense. They are suing under provisions covering mis-statements in offering statements. If you buy shares when a company goes public because of inaccuracies in the offering circular, the shares price plunge and you sell do you sell the rights to sue?

     

    Usually you don't, but Countrywide had some arguments here.
    7 May 2013, 03:01 PM Reply Like
  • it seems if one finds an opportunity to make money regardless whether it is right or not they will sue . this is not right
    8 May 2013, 02:37 PM Reply Like
  • Using common sense it is as written in the "sell" contract. If the sell contract elaborates on the point of future "gain/loss" resulting from transaction involving the MBS then any gain/loss from any future transaction would accrue to AIG and not the party who has acquired the MBS. But, anyway the gain would become taxable to the AIG and any loss would become a income deduction on AIG return.
    8 May 2013, 03:32 PM Reply Like
  • two of the most hated companies (CROOKS)--who cares who wins---Garbage in Garbage out.
    7 May 2013, 01:51 PM Reply Like
  • Everyone or entity has the right to sue. No legal firm would turn you away as long as you are willing to pay the fees. The question after all the work to draw up papers is - will the judge put in on the docket? If there is a settlement in place to take care of the issue, it would never make it. Then there is the potential for the banks to counter sue increasing the legal costs that much more. Any responsible lawyer would council his client on the folly of this type litigation. The probabilities of gaining anything for the effort of the plaintiffs in all this proposed litigation continues to get smaller and smaller. The news bulletins are coinciding with a sharp rise in the stock prices. The higher it goes the more the shorts are going to pump out "bad news" stories even if it only causes a few pennies of a reaction on the tape just to buy back the stock as cheaply as possible.
    7 May 2013, 01:59 PM Reply Like
  • For some it might be about buying back shorted stocks...but the ones to look out for, the ones who are dangerous to future litagations, are the ones who want justice.
    7 May 2013, 02:09 PM Reply Like
  • I like your comment but justice never exits. Its always a difference of opinion. The lawyers really don't care but prefer to see the litigants continue to be riled up. As long as their meter is running - they are happy. When it comes to litigation of situations like this its a no gain sum game. And the taxpayers are losers who support the legal court system through their taxes. These no net benefit to society - only the lawyer country club
    8 May 2013, 01:14 PM Reply Like
  • AIG -- at best -- has an 8 to 10 cents on the dollar claim, the same as every other accredited investor, the same as other Maiden Lane investors got.
    7 May 2013, 02:18 PM Reply Like
  • AIG should concentrate on re-building a very tarnished brand and stay out of litigation that reminds everyone of the idiotic mistakes they made writing CDSs for regulatory arbitrage that turned out didn't really exist.

     

    I also agree with a previous post about the right to sue being very different from the ability to really have a chance of winning and a case that will be heard.
    7 May 2013, 03:05 PM Reply Like
  • Is this a judge like the one involved with Apple in the west coast?
    7 May 2013, 05:08 PM Reply Like
  • Never buy on AIG product.
    7 May 2013, 11:15 PM Reply Like
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