{"id":5645,"date":"2014-07-18T00:00:00","date_gmt":"2014-07-18T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/07\/bank_of_america_settles_rmbs_a"},"modified":"2022-05-06T10:56:20","modified_gmt":"2022-05-06T15:56:20","slug":"bank-of-america-settles-rmbs-a","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-rmbs-a\/","title":{"rendered":"Bank of America Settles RMBS Allegations with AIG for $650M"},"content":{"rendered":"

Bank of America Corp. (BAC)<\/a> has paid American International Group Inc. (AIG) $650 million to settle residential mortgage-backed securities fraud claims. The insurer had originally asked for $10 billion when it filed its RMBS fraud lawsuit in 2011.<\/p>\n

According to the complaint, Bank of America\u2019s mortgage company Countrywide Financial, misrepresented the quality of mortgage securities it was selling to investors. The settlement resolves the securities fraud litigation brought by the insurer against the bank. This includes lawsuits in California and New York accusing Bank of America of fraudulently causing billions of dollars in losses.<\/p>\n

It also takes away the largest obstacle to Bank of America\u2019s $8.5 billion mortgage securities settlement with institutional investors over the financial instruments that Countrywide issued. The investors in that case are 22 institutions, including BlackRock Inc. (BLK.N), and MetLife Inc. (MET.N).<\/p>\n

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

Bank of America Corp. (BAC) has paid American International Group Inc. (AIG) $650 million to settle residential mortgage-backed securities fraud claims. The insurer had originally asked for $10 billion when it filed its RMBS fraud lawsuit in 2011. According to the complaint, Bank of America\u2019s mortgage company Countrywide Financial, misrepresented the quality of mortgage securities […]<\/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":[3751,3752,3757],"tags":[2842,2557],"class_list":["post-5645","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-mortgagebacked-securities","tag-residential-mortgage-backed-securities-fraud","tag-rmbs"],"yoast_head":"\nBank of America Settles RMBS Allegations with AIG for $650M — Investor Lawyers Blog — July 18, 2014<\/title>\n<meta name=\"description\" content=\"Bank of America Corp. (BAC) has paid American International Group Inc. 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