Brookfield to pay $905M to AIG to settle dispute

|About: Brookfield Asset Manageme... (BAM)|By:, SA News Editor

Brookfield Asset Management (BAM) has agreed to pay AIG (AIG) $905M to end a legal conflict connected to interest-rate swaps.

The Canadian asset manager had taken a provision of $1.4B on the contracts as of June 30.

Brookfield sued AIG in 2009, arguing that the latter's collapse in 2008 had triggered default provisions in two 25-year interest-rate swaps from 1990. AIG responded that Brookfield was trying to refrain from fulfilling its responsibilities.