(Bloomberg) — American International Group Inc., the largest commercial insurer in the U.S. and Canada, said it will get at least $650 million as part of a settlement with Bank of America Corp. tied to faulty mortgages.
The deal covers home loans on which the company took losses and also entitles the insurer to a share of what Bank of America pays to investors as part of a Countrywide repurchase settlement, New York-based AIG said today in a statement. The accord couldn't immediately be verified in court records.
Bank of America, based in Charlotte, North Carolina, has pushed to resolve liabilities tied to faulty mortgages that have cost it at least $50 billion since the financial crisis, most inherited from its 2008 purchase of Countrywide Financial Corp. The bank won court approval in January of an $8.5 billion settlement ending claims by investors in more than 500 mortgage- securitization trusts.
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