(Reuters) –

Top Bank of America Corp lawyers knew as early as January that American International Group Inc was prepared to sue the bank for more than $10 billion, seven months before the lawsuit was filed, according to sources familiar with the matter.

Bank of America shares fell more than 20 percent on August 8, the day the lawsuit was filed, adding to worries about the stability of the largest U.S. bank. It wasn’t until Warren Buffett stepped up with a $5 billion investment that those fears were eased, though hardly eliminated.

[REUTERS]

Related posts:

1. Former Va. AG on Bank of America foreclosure legal team By Dan Levine SAN FRANCISCO | Wed Oct 27, 2010...
2. REUTERS Exclusive: IRS weighs tax penalties on mortgage securities (REMICS) We saw this coming for a bit now… (Reuters) –...
3. REUTERS | BofA, Wells, Citi see foreclosure probe fines By Joe Rauch and Clare Baldwin Fri Feb 25, 2011...
4. REUTERS | US investigates Deutsche Bank in foreclosure case Fri Jan 28, 2011 7:04pm EST * Allegations Deutsche Bank...
5. Bank of America Sues First American on ‘Lien Protection’ Claims Is this the first of many to come? Bank of...