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BANK OF AMERICA, COUNTRYWIDE BEING SUED BY AIG for $10 BILLION -AUGUST 2011-NEW YORK

BANK OF AMERICA, COUNTRYWIDE BEING SUED BY AIG for $10 BILLION -AUGUST 2011-NEW YORK

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Published by 83jjmack
Insurer AIG filed on Monday a $10-billion lawsuit against Bank of America, the largest bank in the U.S.


AIG said it lost on mortgage-bond investments because it was a victim of massive fraud allegedly perpetrated by BofA, which took over the businesses of Countrywide Financial Corporation and Merrill Lynch.

The insurer claims that the bank profited from the bundling of mortgages into securities. AIG filed the complaint with the New York State Supreme Court to protect the firm and American taxpayer’s stake in the firm. AIG was bailed out by Washington by $182.3 billion.

AIG said it is not the first lawsuit the insurer had filed against counterparties that sought to profit at their expense, nor will it be the last one.

In July, former Countrywide investors filed a lawsuit against BofA after they opted out of a $624-million settlement. The investors claimed that the bank misled shareholders about its finances and lending practices.



Read more: http://www.allheadlinenews.com/articles/90056597?AIG%20files%20%2410-billion%20lawsuit%20against%20Bank%20of%20America#ixzz1UZeCDYfG
Insurer AIG filed on Monday a $10-billion lawsuit against Bank of America, the largest bank in the U.S.


AIG said it lost on mortgage-bond investments because it was a victim of massive fraud allegedly perpetrated by BofA, which took over the businesses of Countrywide Financial Corporation and Merrill Lynch.

The insurer claims that the bank profited from the bundling of mortgages into securities. AIG filed the complaint with the New York State Supreme Court to protect the firm and American taxpayer’s stake in the firm. AIG was bailed out by Washington by $182.3 billion.

AIG said it is not the first lawsuit the insurer had filed against counterparties that sought to profit at their expense, nor will it be the last one.

In July, former Countrywide investors filed a lawsuit against BofA after they opted out of a $624-million settlement. The investors claimed that the bank misled shareholders about its finances and lending practices.



Read more: http://www.allheadlinenews.com/articles/90056597?AIG%20files%20%2410-billion%20lawsuit%20against%20Bank%20of%20America#ixzz1UZeCDYfG

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Published by: 83jjmack on Aug 09, 2011
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08/12/2011

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424. Based on the above Bank of America became the successor-in-interest to

Countrywide Financial because Bank of America, in self dealing transactions for which it

provided inadequate consideration, purchased substantially all of the assets and all of the

ongoing businesses of Countrywide, rendering Countrywide insolvent and unable to satisfy its

massive contingent liabilities. Additionally, Bank of America became the successor-in-interest

to Countrywide because (a) there was continuity of ownership between Bank of America and

Countrywide, (b) Countrywide ceased ordinary business soon after the transaction was

consummated, (c) there was continuity of management, personnel, physical location, assets and

general business operations between Bank of America and Countrywide, (d) Bank of America

assumed the liabilities ordinarily necessary for the uninterrupted continuation of Countrywide’s

163

business, and (e) Bank of America assumed Countrywide’s mortgage repurchase and tort

liabilities. Thus, Bank of America the successor-in-interest to Countrywide and is jointly and

severally liable for the wrongful conduct alleged herein by the Countrywide Defendants.

425. Based on the same facts, the Supreme Court of the State of New York in MBIA

Ins. Corp. v. Countrywide Home Loans, et al., Index No. 602825/08, held that MBIA sufficiently

alleged a de facto merger “in which Bank of America intended to absorb and continue the

operation of Countrywide.” Id., Order on Motion to Dismiss, at 15 (Apr. 29, 2010).

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