The American National Group managed to gain a victory in terms of the fraud case against the Bank of America. The decision in this regard had been on hold for nearly 2 years all because of the disagreement in terms of the venue for all the actions. A circuit court in the United States had agreed with the appeal of AIG that the case belongs and should be dealt in the state court and not within the domains of the federal court. In the year 2011, the appeal from the side of AIG had been turned down, but the opposite seems to be true for the most of it.
The Bank of America had been making use of the edge act in terms of supporting its decision for making the proceedings of the case to be held at the federal court. It is also in lines to the law that was made in the year 1919 which mainly dealt with international banking. The prime judge in terms of this decision was Pierre Leval said in this regard that the removal of the state towards the federal court is not something that has been authorized in lines to the statute. Not to forget that AIG has sued the number 2 Bank in all of American for an amount of about $ 10 billion.
The claim from the side of AIG deals with the bank and it’s Merrill Lynch Units for carrying out a fraud in the wrong presentation of the data which involved an amount of about $ 28 billion for the residential mortgages and related securities. The shares of the Bank had plunged nearly 20.3 % when the announcement pertaining to the law suit reached the main screen. Moreover, AIG is looking to make use of this money for recovering from its near collapse in the year 2008 which lead to an amount of about $ 182.3 billion related to the federal bailouts.
A spokesperson from the Bank said that this decision can be termed to be a narrow procedure and ruling. But still the venue issue might not be over, as there are certain other dimensions which would need more attention and related decisions.