NEW YORK--(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
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
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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.
Source: American International Group, Inc.