NEW YORK (AP) — Insurer AIG wants more than $10billion from Bank of America, saying the bank cheated it by sellingit overvalued mortgage-backed securities.
|American International Group Inc. filed suit Monday in New YorkState's Supreme Court.
|Bank of America Corp. denies the allegations,saying AIG ”recklessly” chased investments with highreturns, and was big and sophisticated enough to know therisks.
|Banks have been hit by a series of suits over misrepresentationsrelated to the securities. In June, Bank of America agreed to pay$8.5 billion to a group of investors for selling them poor-qualitymortgage securities.
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