The U.S. Court of Appeals for the Second Circuit has ruled that a little-known international banking law does not allow Bank of America to remove a lawsuit filed by American International Group over mortgage-backed securities from state to federal court, though it left open the possibility that BofA could remove the case on other grounds.
Judge Pierre Leval (See Profile), writing for a unanimous panel that included Judges Rosemary Pooler (See Profile) and Debra Ann Livingston (See Profile), ruled on April 19 in AIG v. Bank of America, 12-1640, that the federal Edge Act of 1919 does not allow BofA to remove the case from Manhattan Supreme Court, where AIG originally filed it.
