AIG drops its lawsuit against the FRBNY over who may sue over losses suffered by the company on...

|By:, SA News Editor
AIG drops its lawsuit against the FRBNY over who may sue over losses suffered by the company on MBS. The Fed's Maiden Lane II took over the securities as part of the bailout, and the issue was whether AIG gave up its right to sue when it unloaded the paper. The move comes even as a judge earlier this month said AIG did not relinquish its right to sue Bank of America (BAC) over mortgages issued by Countrywide.