{"id":5475,"date":"2013-06-05T00:00:00","date_gmt":"2013-06-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/06\/aig_drops_rmbs_lawsuit_against"},"modified":"2022-05-04T14:20:26","modified_gmt":"2022-05-04T19:20:26","slug":"aig-drops-rmbs-lawsuit-against","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/aig-drops-rmbs-lawsuit-against\/","title":{"rendered":"AIG Drops RMBS Lawsuit Against New York Fed, Fights Bank of America\u2019s $8.5B MBS Settlement"},"content":{"rendered":"

\t\t\t\tAmerican International Group (AIG) and Maiden Lane II dismissing lawsuit against the Federal Reserve Bank of New York regarding the $182.3 billion financial bailout that the insurer received during the 2008 economic crisis. In dispute was whether AIG still had the right to pursue a lawsuit over residential mortgage-backed securities <\/a>losses and if the company had moved $18 billion of litigation claims to Maiden Lane, which is a New York Fed-created entity.<\/p>\n

An AIG spokesperson said that in the wake of a recent ruling by a district judge in California that the company did not assign $7.3 billion of the claims to Maiden Lane, both are dropping their action without prejudice. This means that AIG can now pursue Bank of America (BAC) <\/a>for these claims, which is what the insurer wants to do.<\/p>\n

Bank of America had said that AIG could not sue it over the allegedly fraudulent MBS <\/a>because the latter transferred that right when the New York Fed bought the instruments in question 2008. However, according to Judge Mariana R. Pfaelzer, even if the New York Fed meant for Maiden Lane II to have these claims, that intention was not made clear.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

American International Group (AIG) and Maiden Lane II dismissing lawsuit against the Federal Reserve Bank of New York regarding the $182.3 billion financial bailout that the insurer received during the 2008 economic crisis. In dispute was whether AIG still had the right to pursue a lawsuit over residential mortgage-backed securities losses and if the company […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3987,3751,4020,3752,3757],"tags":[],"class_list":["post-5475","post","type-post","status-publish","format-standard","hentry","category-american-international-group","category-bank-of-america","category-bank-of-new-york-mellon-corp","category-financial-firms","category-mortgagebacked-securities"],"yoast_head":"\nAIG Drops RMBS Lawsuit Against New York Federal Reserve | Securities Fraud Attorney<\/title>\n<meta name=\"description\" content=\"AIG dismiss lawsuit against the Federal Reserve Bank of New York regarding the $182.3 billion financial bailout that the insurer received during the 2008 economic crisis.\" 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