AIG’s swaps unit has filed a lawsuit against ICP Asset Management for $350 million over collateralized debt obligations (CDOs) losses, Financial Times reports. ICP has been accused of making $1.5 billion in unauthorized, above market purchases of residential mortgage-backed securities that went into two CDOs, known as Triaxx-1 and Triaxx-2. AIG insured those CDOs against default and also acquired $900 million of their senior notes. ICP tried to cover up its misconduct by making fraudulent misrepresentations and omissions. AIG also sued Moore Capital, a hedge fund run by Louis Bacon, but the suit does not accuse Moore of fraud.
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