AIG to sue Bank of America over mortgage-backed securities

AIG to sue Bank of America over mortgage-backed securities

The American International Group plans to sue Bank of America over hundreds of mortgage-backed securities, adding to the surge of investors seeking compensation for the troubled mortgages that led to the financial crisis.

The suit, expected to be filed Monday in New York state’s Supreme Court, seeks to recover more than $10 billion in losses on $28 billion of investments, possibly the largest mortgage-security-related action filed by a single investor.

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