AIG Announces Settlement with Bank of America on Residential Mortgage Related Disputes
July 16 2014 - 07:00AM
Business Wire
American International Group, Inc. (NYSE:AIG) today announced
that it has reached a global resolution of its residential mortgage
related disputes with Bank of America. The resolution includes
its claims pending in New York and California federal courts
related to the creation, offering, and sale of RMBS from which AIG
and its subsidiaries suffered losses either directly on their own
account or in connection with their participation in AIG’s
securities lending program. The resolution also covers AIG’s
objections to the $8.5 billion settlement of Countrywide’s mortgage
repurchase obligations to various investors, as well as disputes
concerning the issuance of mortgage guaranty insurance by AIG’s
United Guaranty subsidiaries to Bank of America and Countrywide.
Under the terms of the settlement, AIG will receive $650 million in
cash plus its pro rata share of whatever amount is ultimately paid
out to investors in connection with the Countrywide repurchase
settlement. In addition, the parties have agreed, subject to the
approval of Fannie Mae, Freddie Mac and certain other mortgage
holders, to resolve the outstanding mortgage guaranty claims
disputes in accordance with agreed-to claims processes and payment
formulae.
“We are very pleased to have this matter resolved,” said Robert
H. Benmosche, AIG President and Chief Executive Officer. “Today's
settlement is a just resolution that’s in the best interest of our
various stakeholders.”
American International Group, Inc. (AIG) is a leading
international insurance organization serving customers in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance and
retirement services in the United States. AIG common stock is
listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGInsurance | LinkedIn:
http://www.linkedin.com/company/aig |
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
jurisdictions, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
American International Group, Inc.Investors:Liz Werner,
212-770-7074elizabeth.werner@aig.comorMedia:Jon Diat,
212-770-3505jon.diat@aig.com
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