AIG sues two financial firms over CDO losses

Reuters

NEW YORK (Reuters) - American International Group Inc <AIG.N> sued two money managers on Thursday, contending the giant insurer lost billions of dollars insuring mortgage securities that one of the financial firms created.

AIG sued ICP Asset Management and Moore Capital in New York State Supreme Court.

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The insurer said in the lawsuit that the defendants breached obligations to AIG related to the creation of complex collateralized debt obligations. AIG said it has suffered more than $350 million in damages from the alleged misconduct.

(Reporting by Martha Graybow, editing by Gerald E. McCormick)