AIG sues BofA for $10 billion alleging "massive fraud"

AIG sues BofA for $10 billion alleging "massive fraud"

finance.yahoo.com

NEW YORK (Reuters) - The insurer AIG is suing Bank of America Corp to recover more than $10 billion of losses from a "massive fraud" on mortgage debt, deepening the morass of litigation faced by the largest U.S. bank.

American International Group Inc, still largely owned by taxpayers after $182.3 billion of government bailouts, is the latest of a growing number of investors filing lawsuits to hold banks responsible for losses on soured mortgages that contributed to the financial crisis.

The AIG complaint accuses Bank of America and its Countrywide and Merrill Lynch units of misrepresen

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I think this may just be the begining for lawsuits of this nature. The moment any bank is found guilty, I think its also goig to open the flood gates for individual lawsuits as well.

Should something like this be dealt with in the court system, or should Congress and oversite boards also be involved, since they are technically the ones who oversee the regulation as well as fraud investigations (SEC / FBI / Secret Service).

Is this a good thing? Bad thing? Disaster in the making or a God send that we just don't see yet?

If the courts get involved and stay involved, do you think that the fEderal Government should be included in those lawsuits since its apparent that if wrongdoing is found, that its safe to assume that the Congressioanl oversite committees failed to do their job and protect the people?

In the intrest of disclosure AIG is responsible for Federal Government individual retirement accounts (Congress - both houses).

finance.yahoo.com
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reply to post by Xcathdra


Chester Copperpot would be proud. S&F for you. This is great news....I'd like to see BofA do the truffle shuffle to get out of this but I think it's gonna take a little more than that. But AIG...were they not guilty of fraud as well?

reply to post by Xcathdra


I think they lost about 9.5% off the shares during the night

reply to post by Xcathdra


While it's nice to accuse banks and mortgage companies of wrongdoing, there's so much blame to go around ..... well, it's not even funny.

For example, we could blame government oversight entities....not likely to happen.

The big question is, where will the money come from to pay this and other potential court wins?
BoA has lots of money.....but I'm betting the consumer gets suckered yet again.

Interesting series on the Global Meltdown

reply to post by DontTreadOnMe


I would go so far as to say the blame lies with the American People for being lazy and apathetic about our Government and its actions. Ive said it in other threads along the same topics... We should have grounded them the moment they took the credit card out and bought junk we didnt need.

We didnt react when the oversight committees were being funded by the companies they were suppose to be watching...

We didnt react when the banks went tits up because of greed then demanded we bail them out, while they stepped on our necks dueing the housing bubble.

AIG is just as guilty as BoA... The only reason AIUG gets the support it does is because tehy hold the retirement funds of Congressional members.

I say the American people should get together and file a class action lawsuit against all financial isitutions and the government for fraud, lying, bait and switch, insder trading, and failing to fullfull their oaths of office.

Thats just me though...

And like all beasts when the food is gone they turn on each other.

They can have each other for all I care. Good Riddance.

Originally posted by MasterGemini
And like all beasts when the food is gone they turn on each other.

They can have each other for all I care. Good Riddance.

Of coarse they are turning on each other! Parasite's and User's,Use.The have no need for each other.Mission accomplished.What we have here with them consuming each other is a Super Merger of sorts.Where there shall be only ONE! That's what we need to concern ourselves with.This is dangerous.We would be better of with none than just ONE.

I honestly do not understand enough of this, but can anyone tell me if I need to close my BoA checking acct. and pull out my money??? Are any banks safe at this point?

reply to post by Htrowklis82


I wouldn't worry about checking accounts where you're just rolling funds through. You can always cancel direct deposit or whatever if things go south.

No bank is safe with savings IMO. Although people will say that your deposits are covered by the FDIC, they're not covered against devaluation in the inflationary process that would be necessary to 'save' your savings via the FDIC since it's broke as well.

Originally posted by Xcathdra
reply to post by DontTreadOnMe

 

I would go so far as to say the blame lies with the American People for being lazy and apathetic about our Government and its actions. Ive said it in other threads along the same topics... We should have grounded them the moment they took the credit card out and bought junk we didnt need.

We didnt react when the oversight committees were being funded by the companies they were suppose to be watching...

We didnt react when the banks went tits up because of greed then demanded we bail them out, while they stepped on our necks dueing the housing bubble.

AIG is just as guilty as BoA... The only reason AIUG gets the support it does is because tehy hold the retirement funds of Congressional members.

I say the American people should get together and file a class action lawsuit against all financial isitutions and the government for fraud, lying, bait and switch, insder trading, and failing to fullfull their oaths of office.

Thats just me though...

We could only wish... That's like asking for disclosure... It would be nice, but it will never happen.

Bank of America will be the next Lehman Brothers. I believe that it's stock is going to zero unless another massive stimulus is announced. We may be in the midst of a bank run. see here:

reply to post by Skerrako


From everything I have seen Bank Of America has other issues than just the fraud lawsuit. I will be curious to see how this plays out and if it leads back to congress and special intrest groups or not.

reply to post by Xcathdra


What a joke, I don't like BofA but at least they are supposedly private, AIG bastards and corrupted rats claim they are tax payer run but the truth is that their CEOs no only get outrageous pay and bonuses, but during the bailouts they wetn on retreats in California at the expenses of tax payer because they were stress.

This dirty bastards behind AIG owns the tax payer trillions of dollars that they have stolen, never pay back, at least the too big ot fail did, and they are backed by our own government.

I say let gather the dirty bastards and feed them to the masses, the unemployed, the homeless and those that has lose their honest living thanks to their corrupted dealings.

The wheels on the bus go round and round.

Can't cry anymore, just have to laugh.. check this out..

Bank of America's back-door TARP

Taxpayers may not realize it, but they just bailed out Bank of America again, this time to the tune of more than a half billion dollars.
The Charlotte, NC-based bank was one of the biggest recipients of bailout funds during the financial crisis. But Bank of America (BAC) continues to face deep problems related to its troubled mortgage portfolio and investors have battered the stock, which has plunged over 40% so far this year. That's escalated concerns that the bank may need to raise more capital. Yves Smith at Naked Capitalism has even started a BofA death watch.
But apparently the federal government is determined to resurrect BofA: the Wall Street Journal reports the feds have just used Fannie Mae, which is controlled by the U.S. government, to infuse BofA with $500 million and ease one of the bank's biggest headaches.

reply to post by JacKatMtn


Wow.... just wow...

Its like trying to put a fire out using gasoline.

I would like to know, if they are receiving tarp, if the CEO / board are getting bonuses. I still think businesses who take tarp money ae subject to salary restrictions.

reply to post by Xcathdra


No clue, it's almost surreal the moves being made... only thing I can think is that they don't give a rats hind end how they look to the taxpayers..

I also keep thinking that we would be nearly 4 years into the recovery process if those that were responsible were allowed to fail.