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(Image from article: "AIG sues BofA for $10 billion alleging "massive fraud"")

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

AIG sues BofA for $10 billion alleging

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.

 

Subprime Mortgage Index Soars

A bellwether index of subprime mortgage bonds rallied, a day after the New York Fed suspended further auctions of so-called Maiden Lane II securities acquired in the AIG bailout.

 

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