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Exclusive: Bank of America kept AIG legal threat under wraps

Top Bank of America Corp lawyers knew as early as January that American International Group Inc was prepared to sue the bank for more than $10 billion, seven months before the lawsuit was filed, according to sources familiar with the matter.

 

AIG Agrees to $725 Million Settlement of Securities Suit

American International Group Inc. agreed to pay $725 million to settle a long-running securities lawsuit alleging that the company several years ago engaged in insurance bid-rigging and inflated its stock price and insurance reserves.

Senh: If AIG were engaged in securities fraud and manipulating its stock price, shouldn't the execs be in jail? This just sounds like they paid their way out of prison. Martha Stewart got jail time for insider trading that amounted to a difference of just tens of thousands of dollars, AIG probably defrauded investors out of billions.

 

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