Bank of America (BAC) has rejected a request from AIG to reopen negotiations over the $8.5B MBS...


Bank of America (BAC) has rejected a request from AIG to reopen negotiations over the $8.5B MBS settlement after the judge overseeing the Article 77 hearing suggested mediation rather than waiting for her to rule. The actions suggest BofA is feeling confident the judge will approve the deal, and AIG may have waited a couple of years too long before trying to work out a better arrangement. The hearing resumes July 8.

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Comments (8)
  • MrWittyOne
    , contributor
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    I agree with BAC. Should the judge not rule in their favor, bankruptcy is an option then AIG has to start over as a creditor and will likely end up with egg on their face
    27 Jun 2013, 08:37 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
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    Right. The judge can only approve or not approve the settlement. She can't award a higher amount.
    27 Jun 2013, 08:50 PM Reply Like
  • John/Jack
    , contributor
    Comments (157) | Send Message
     
    I'll say it for the tenth time: Eight cents on the dollar is a great settlement for people who signed away their right to sue.
    27 Jun 2013, 08:48 PM Reply Like
  • DoowopDave
    , contributor
    Comments (253) | Send Message
     
    I'll also say again: BofA's lawyers keep making mistakes. The judge will throw out the settlement. BofA cannot file bankruptcy in NY. BofA has been and still is - in trouble.
    27 Jun 2013, 09:00 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (194) | Send Message
     
    Dude, the BK talk is for the Countrywide subsidiary and not BAC as a whole. AND YES, BAC can put a subsidiary in BK and have explicitly threatened to do so.
    27 Jun 2013, 11:00 PM Reply Like
  • OverSouled
    , contributor
    Comments (277) | Send Message
     
    Big Crook sued by Bigger Crook for return of spoils. AIG should be paid every penny they deserve - in credit default swaps.
    27 Jun 2013, 10:19 PM Reply Like
  • billmichael
    , contributor
    Comments (141) | Send Message
     
    ROFL
    28 Jun 2013, 10:44 AM Reply Like
  • MexCom
    , contributor
    Comments (3073) | Send Message
     
    The bonds have gone up in value since the settlement and now they want more. They should get more money the old fashion way and told to go out an peddle more insurance.
    28 Jun 2013, 05:52 AM Reply Like
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