Insurer AIG wants more than $10 billion from Bank of America, saying the bank cheated it by selling it overvalued mortgage-backed securities, The Associated Press reports. Both have Connecticut operations.
American International Group Inc. filed suit Monday in New York State’s Supreme Court.
Bank of America Corp. denies the allegations, saying AIG “recklessly” chased investments with high returns, and was big and sophisticated enough to know the risks.
Banks have been hit by a series of suits over misrepresentations related to the securities. In June, Bank of America agreed to pay $8.5 billion to a group of investors for selling them poor-quality mortgage securities.
