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Tuesday, February 26, 2013

U.S. judge puts AIG/NY Fed case on hold, BofA case goes on, (NYSE: BAC)

A federal judge has put American International Group Inc's dispute with a financial crisis-era bailout vehicle on hold, while another court addresses the insurer's separate $10 billion lawsuit against Bank of America Corp over defective mortgages.But in rejecting AIG's effort to litigate quickly against the Maiden Lane II vehicle created by the Federal Reserve Bank of New York, U.S. District Judge Lewis Kaplan said that "on the face of it" some of the New York Fed's and Maiden Lane's actions "perhaps are unattractive and, indeed, wrongful."The dispute concerns whether AIG transferred $18 billion of litigation claims to Maiden Lane, which the New York Fed created in December 2008 to purchase residential mortgage securities from AIG as part of that company's rescue three months earlier.AIG said such a transfer would block its efforts to recoup losses from banks. On Jan. 11, it sued for a court declaration that it had not transferred those claims, including more than $7 billion in the Bank of America case.

Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Shares of BAC traded higher by 0.91% or $0.1/share to $11.13. In the past year, the shares have traded as low as $6.72 and as high as $12.42. On average, 165846000 shares of BAC exchange hands on a given day and today's volume is recorded at 172734928.