AIG Permitted To Pursue Fraud Claim Worth $7B Against Bank of America

Bank of America Corp (NYSE:BAC), intent on shaking off the string of lawsuits that have been hounding it since the financial crisis, appears to be entrapped in a new legal battle with American International Group Inc (NYSE:AIG). Mariana R. Pfaelzer, a federal judge in California, ruled in favor of AIG saying that the insurer has the right to pursue its fraud claim against BAC, NY Times reports. Bank of America Corp (NYSE:BAC) Committed Fraud The lawsuit alleges that Bank of America Corp (NYSE:BAC) committed fraud by selling $7 billion worth of mortgage backed securities to American International Group Inc (NYSE:AIG) under duress in 2008. The instruments were sold…