Bank of America Corp. and American International Group Inc. must provide evidence from a 2008 U.S. bailout transaction to a federal judge who is deciding whether AIG can sue over Countrywide Financial mortgage securities.
Bank of America Corp. lawyers asked a federal judge to dismiss American International Group Inc.’s fraud claims over devalued Countrywide Financial mortgage-backed securities it had to sell as part of the government bailout.
American International Group Inc. sued to preserve its right to seek damages from the originators of devalued residential mortgage-backed securities it had to sell to the Federal Reserve Bank of New York in 2008.
The Federal Reserve Bank of New York said it sold the remaining $6 billion of mortgage bonds in its Maiden Lane II LLC portfolio, which were assumed in the government rescue of American International Group Inc.
The Federal Reserve Bank of New York is considering selling assets in its Maiden Lane III LLC portfolio, which were assumed in the government bailout of American International Group Inc., the district bank said today.
The Federal Reserve Bank of New York sold $6.2 billion in face value of mortgage bonds it assumed in the rescue of American International Group Inc. to Goldman Sachs Group Inc., allowing one of its bailout loans to be repaid.