Boston, MA 02/20/2014 (wallstreetpr) – Bank of America Corporation (NYSE:BAC) has won an appeal against AIG which wanted the $8.5 billion mortgage security settlement package suspended. At the hearing Justice Saliann Scarpulla of the New York Supreme ordered the judgment to come to full execution agreeing with his earlier predecessor Judge Barbara Kapnick.
American International Group Inc (NYSE:AIG) had sought the indulgence of the court concerning some matters which it claimed remained unresolved with the earlier judgment.
American International Group Inc (NYSE:AIG) immediately after the confirmation of the order reiterated in a statement their commitment to press forward with an appeal as they feel there are more pressing matters yet to be addressed. The dispute begun in 2011 where BAC through its entity Countrywide Unit was accused of selling substandard and fraudulent mortgage backed securities to investors. Acting as a trustee to the investors, Bank of New York Mellon had come to a consensual agreement with Bank of America Corporation (NYSE:BAC) on the $8.5 billion settlement package.
American International Group Inc (NYSE:AIG) has overtime maintained the settlement package is not enough and that BAC should be forced to pay more on the damages they caused through their fraudulent backed mortgage securities. The earlier judgment by Judge Barbara according to some pension funds left in the dark the total amount that each affected party would be paid. AIG on their part are pursuing a suit in which they are seeking a total of $9 billion from the Bank.
It is being reported that American International Group Inc (NYSE:AIG) was willing to drop its objection of the $8.5 billion package if BAC had agreed to settle for $9 billion. This is contrary to other investors involved in the lawsuit who feel justice has been served and that the $8.5 billion package is more than enough. Some of the investors that have agreed with the settlement package include BlackRock Inc. and MetLife Inc.
Bank of America Corporation (NYSE:BAC) slipped in Wednesday trading session dropping by 1.64% to close the day at $16.20.
