AIG Sues Bank of America for $10B
MANHATTAN (CN) - AIG sued Bank of America, Merrill Lynch and Countrywide Financial for $10 billion Monday, claiming they fraudulently induced it to invest $28 billion in nearly 350 residential mortgage-backed securities from 2005-07, and that the defendants' frauds "at every level of the securitization process" cost AIG "and ultimately American taxpayers" more than $10 billion.
The 187-page complaint in New York County Court contains 3 pages of fraud allegations in the Table of Contents alone.
The complaint, filed as world financial markets crumbled due to Standard & Poor's downgrading of the U.S. government's creditworthiness, claims the defendants snookered the rating agencies during the housing boom by providing them the same fraudulent materials they gave to AIG and other buyers: "To make matters worse, defendants provided to the rating agencies the same false credit metrics that riddled the Offering Materials, thus allowing defendants to engineer inflated credit ratings for the RMBS [residential mortgage-backed securities], which they also used to market the securities."
The Table of Contents provides a guided tour of the allegations, which AIG is not the first to make against Countrywide, which Bank of America bought on the cheap after it collapsed, and Merrill Lynch, which Bank of America also bought after the fabled stockbroker was caught with its pants down during the market collapse.
Countrywide Bank Rating - News
Countrywide and Merrill Lynch were aware of the actual quality of the underlying mortgage loans, but they misrepresented them by deliberately pumping up performance figures for the portfolio as well as propping up the credit ratings. Bank of
The Table of Contents provides a guided tour of the allegations, which AIG is not the first to make against Countrywide, which Bank of America bought on the cheap after it collapsed, and Merrill Lynch, which Bank of America also bought after the fabled
It faces a $10 billion lawsuit from American International Group (AIG) over alleged securities fraud from the mortgage crisis, and that's just one of the allegations that have piled up from the bank's 2008 takeover of the disreputable Countrywide
The price/book of the stock is under 0.5 right now, half of many other bank stocks. And as of July 20, Barclays reiterated an “equal weight” rating on the stock — and while it lowered its price target for shares from $19 to $14, that's still a 40%
Wells Fargo also cut the largest US bank by assets -- Bank of America (BAC.N) on expectations of lower economic growth. Mortgage-related costs have been high at Bank of America because of the overhang from the legacy Countrywide mortgage losses,
AIG Sues Bank of America for $10B - Courthouse News Service
MANHATTAN (CN) - AIG sued Bank of America, Merrill Lynch and Countrywide Financial for $10 billion Monday, claiming they fraudulently induced it to invest $28 billion in nearly 350 residential mortgage-backed securities from 2005-07, and that the defendants' frauds "at every level of the securitization process" cost AIG "and ultimately American taxpayers" more than $10 billion.
The 187-page complaint in New York County Court contains 3 pages of fraud allegations in the Table of Contents alone.
The complaint, filed as world financial markets crumbled due to Standard & Poor's downgrading of the U.S. government's creditworthiness, claims the defendants snookered the rating agencies during the housing boom by providing them the same fraudulent materials they gave to AIG and other buyers: "To make matters worse, defendants provided to the rating agencies the same false credit metrics that riddled the Offering Materials, thus allowing defendants to engineer inflated credit ratings for the RMBS [residential mortgage-backed securities], which they also used to market the securities."
The Table of Contents provides a guided tour of the allegations, which AIG is not the first to make against Countrywide, which Bank of America bought on the cheap after it collapsed, and Merrill Lynch, which Bank of America also bought after the fabled stockbroker was caught with its pants down during the market collapse.
Countrywide Bank Rating - Bookshelf
Standard & Poor's creditweek
The CreditWatch positive placement reflects the higher rating on Bank of America and the benefits Countrywide will receive because of being wholly owned by ...Mortgage banking
Yes, we understand what the CAMEL rating is. [The CAMEL rating system is a ... You saved the day for Countrywide in 200/ before it was acquired by Bank of ...Financial Engineering, The Evolution of a Profession
Aftermath of Event Fitch, the ratings agency, downgraded Countrywide's issuer default ratings after ... The integration of Countrywide and Bank of America ...Should Increased Regulation of Bank Risk-Taking Come from Regulators Or from the Market?, A Reprint from the żEconomic Quarterlyż
For example, advances to Countrywide Bank went from $51 billion in 2007:Q3 to more ... deemed to be less safe and sound according to bank examiner ratings. ...Moody's bond survey
In addition, Moody's assigned several prospective ratings to Countrywide ... rating of Aaa to the Pacific Horizon Treasury Only Fund, advised by Bank of ...Casual Information Directory
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