AIG as Defendant: The Los Angeles Times reports on Countrywide's lawsuit against AIG. Countrywide alleges the insurance giant didn't cover more than $43 million in losses from failed real estate loans. The L.A. Times points out that the suit could provide "a rare window into the collapse of the financial and real estate markets."
AIG as Plaintiff:Even as it battles intense criticism over its distribution of hundreds of millions of dollars in executive bonuses, AIG is continuing its quiet lawsuit against the government to get back $306 million in tax payments, reports the NYT via the Boston Globe. AIG filed the suit in February.
Dilemma: As legislation to cut pay among the financial industry moves through Congress, some bank executives are claiming they're being forced by the government to choose between two crippling options, reports the WaPo. The executives say accepting compensation cuts could destroy their ability to compete with rivals, while returning federal aid could retard lending.
More Layoffs:Katten Muchin Rosenman and Jenner & Block are two of the latest law firms to cut lawyers and staff, reports the National Law Journal. Katten dismissed 23 lawyers, including 12 associates and seven non-equity partners, six paralegals, and 40 administrative staff. Jenner & Block will let go 34 support staff in Chicago and Washington.