AIG seeks to sue mortgage banks

January 17, 2013 by Arthur D. Postal

American International Group and the Federal Reserve Bank of New York are apparently going to war.

The new development is spelled out in a lawsuit filed by AIG in New York state court that seeks to confirm that it has authority to sue mortgage banks that sold its subsidiaries virtually worthless mortgages whose failure to perform required AIG to seek a federal bailout.

It comes as the Financial Stability Oversight Council debates whether to designate AIG as systemically significant non-bank, a move that would keep it under the supervision of the Fed, with even more heightened capital requirements and restrictions.  Click here to read…

Originally Posted at LifeHealthPro on January 17, 2013 by Arthur D. Postal.