Bank of America and AIG Continue to Spar Over Mortgage Fraud
Bank of America (NYSE:BAC) is requesting that AIG’s (NYSE:AIG) law firm to be banned from the $10 billion lawsuit against them, sighting an alleged conflict of interest. Insurance company AIG is suing Bank of America over mortgage fraud accusing them of misrepresenting the quality of more than $28 billion of mortgage-backed securities. Bank of America said that one of the lawyers, Marc Becker, formerly defended Merrill Lynch & Co and First Franklin Financial Corp both now owned by Bank of America.
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AIG’s (NYSE:AIG) lawyer Marc Becker is no longer on the case. Marc Dworsky, a representative of Bank of America and previously employed Becker says, “Becker’s involvement in this case has already tainted these proceedings, Quinn cannot be in a position to use defendants’ confidential information against them in the future — particularly in a case of this magnitude.”
Bank of America’s (NYSE:BAC) stock is up 5.8% to $6.38. Shares are down 52.55% year to date. The stock has traded in a 52-week range between $5.13 and $15.31.
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