Why is AIG dragging this settlement? Has AIG forgotten that they are just as guilty for the financial disaster. Bac should simply put Countrywide in bankruptcy and be done with all this useless litigation. AIG should concentrate on business instead of the past. SHAME ON AIG they are not innocent of anything.
As a former BAC shareholder, I can appreciate the feeling of being held accountable for the misdeeds of a company they rescued- $50B and counting, last I heard. That seems like enough suffering, right? But AIG, despite their own misdeeds, has a fiduciary responsibility to represent their own shareholders. That means, to the extent possible, AIG needs to pursue remedies from that fraction of the collapse they didn't bring upon themselves. That hardly seems fair, or even possible, but that knot must be painstakingly untied. My hope is that AIG gets a few more billion out of this and that this only sets BAC back another quarter or two. It's a good company. They will recover.
I actually like both companies. The problem here is they are simply wasting time. The judge will rule in several months whether this stands or not. If not they could be at war for years ... The simple fact is the settlement helps all parties. I understand Bank of America does not want to bankrupt countrywide ....but I am sure if they are hit with a large settlement it will force their hand. In addition if you have a third party that is authorized to settle why not uphold it. This sends out a horrible message to settlements.
one could argue AIG was insuring MBS with fake ratings, now who was at fault here? I say ratings agencies...how are they walking away unscathed, when if they did their job none of this would have ever have happened because they would have been un-tradeable and un-insurable