Pimco sues AIG over losses in financial crisis

Gavel Jason Morrison

Pacific Investment Management Co. accused American International Group of misleading investors about 'colossal' losing bets on unregulated credit-default swaps and subprime debt before the 2008 financial crisis.

Bloomberg News reports that Pimco seeks to hold AIG accountable for tens of billions of dollars in shares and bonds that were wiped out because of the insurer’s exposure to the swaps and residential mortgage-backed securities.

AIG falsely claimed its exposure was remote even in a severe situation, Pimco said in a complaint filed March 27 in state court in Santa Ana, California.

The case was filed by Pimco after it declined to join in a $970.5m settlement along with other investors.

To access the complete Bloomberg News article hit the link below:

Pimco Sues AIG Over Losses From 2008 Financial Meltdown

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