The largest underwriter of commercial and industrial insurance in the United States, AIG seeks to delay an $8.5 billion settlement between Bank of America and a group of 22 mortgage securities investors. Bank of America Corp.’s settlement will be delayed at least two weeks, reported Bloomberg News, after the American International Group’s lawyers filed papers in New York State Supreme Court. Black Rock Inc., Met Life Inc., and Pacific Investment Management Co. are among some of the institutions supporting the settlement.
AIG is an American multinational insurance corporation. According to the 2013 Forbes Global 2000 list, AIG was the 62nd-largest public company in the world. As of April 21, 2013, it had a market capitalization of $57.53 billion.
Justice Saliann Scarpulla of New York state court in Manhattan, took over the case this week, and has agreed to delay the decision. According to lawyers involved in the case, the decision will be delayed from taking effect until at least February 19. Justice Barbara Kapnick is the Judge who approved the settlement with the investors, and according to The New York Times, was promoted to a state appeals court.
A spokesman for Bank of America, Lawrence Grayson, declined to comment on the delay. Kevin Heine, a spokesman for Bank of New York Mellon declined to comment on the issue as well.
The lawyer representing the 22 investors, Kenneth Warner, wrote in a letter to the judge that a delay would be “prejudicial to the thousands of certificate holders who are waiting for the settlement proceeds to be distributed.”
Justice Saliann Scarpulla has scheduled oral arguments for February 19, delaying the original date of February 7. A spokesman for New York state courts, David Bookstaver, stated in a telephone interview that, “This was simply a courtesy to all the parties involved and an opportunity to take a deep breath.” For information about employment opportunities with American International Group, Inc., readers can click here.