AIG SEEKING TO RECOUP BILLIONS FROM WALL STREET GIANTS - APRIL 2011
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Maxwell StrachanOF Huffington Post 4/29/2011 AIG Says It Was Victim Of Wall Street's Worst Behaviors In New Laws uit Posted: 04/29/11 01:54 PM ET Two and a half years after first being bailed out by the federal government, insurance giant AIG has officially begun to place blame on companies it alleges profited at AIG's expense. In a new lawsuit, AIG is seeking to recoup " potentially billions of dollars" from Wall Street giants, including Bank of America and Goldman Sachs, according to The New York Times. As part of that larger effort, AIG is first seeking $350 million from ICP Asset Management and some of the accompanying profits from Moore Capital. The case pits AIG, which is still 92 percent-owned by the U.S. government, against money management firms that both sold and invested in exotic Wall Street securities. If the suit ends in the insurance company's favor, it would be yet another strike against Wall Street, which has drawn heavy criticism for selling clients risky securities while often placing bets on those same securities. News of the lawsuit comes only weeks after Wachovia Capital Markets, now owned by Wells Fargo, paid $11 million to settle similar charges of fraudulently misleading investors. In mid-April, a Senate report found Goldman Sachs had also systematically misled clients allegedly selling them financial investments the bank knew to be junk. ICP maintained two large bundles of securities, known as collateralized debt obligations (CDOs), valued at $7.7 billion and backed predominately by bundles ofmortgage securities. On top of insuring $6 billion worth of those CDOs, AIG had made an additional $900 million investment in them.
AIG SEEKING TO RECOUP BILLIONS FROM WALL STREET GIANTS - APRIL 2011
