In an exclusive story in The New York Times this morning, Wall Street and finance reporter Louise Story writes that the behemoth insurance company American International Group Inc. is going to sue Bank of America, claiming the banking institution provided false information on mortgage bonds to AIG and ratings agencies, which lead to losses of more than $10 billion.

In 2008, the government offered an $85 billion bailout to American International Group Inc., one of the world's largest insurance companies, in order to prevent its collapse. When AIG accepted the bailout, it waived its right to sue banks over most of the mortgage securities that it had acquired. But, it did not give up its right to pursue legal action regarding $40 billion of mortgage bonds it purchased directly from banks. In an exclusive story for The New York Times, finance reporter Louise Story explains how AIG is now going after hedge funds and banks to try to recover billions in losses related to mortgage securities that caused the financial collapse in 2008. 

Insurance giant AIG has reached an agreement and a plan with the federal government to pay back some $70 billion given to the company in 2008 as part of the Troubled Asset Relief Program, just before their two-year deadline on October 3. Under the agreement, the Federal Reserve Bank of New York will remove it's ties to American International Group, and the Treasury will increase it's stake to 92 percent, gradually bringing the shares it owns from preferred to public to transfer the control back out of government hands. But is the public buying? Louise Story gives us the latest.

Louise Story, finance reporter for The New York Times, co-reported on a big story in today's paper. In the fall of 2008, when the government propped up A.I.G. with billions of taxpayer dollars, the insurance giant was forced to forfeit its right to sue the very banks which helped drive it into the ground.

A.I.G. investors and executives alike have been frustrated over their lack of legal recourse against big banks, including Goldman Sachs, for insuring over-leveraged mortgage backed securities with them. However, after the Securities and Exchange Commission filed a civil suit for fraud against Goldman Sachs in April accusing the bank of misrepresenting a mortgage deal to investors. A.I.G. is now examining the idea of filing its own suit against Goldman. Was A.I.G. indeed misled by Goldman into insuring mortgage deals that the bank knew were flawed?

A.I.G.'s board has rejected a plan to sell its Asian life insurance arm to Prudential, which would have provided the U.S. government with its first major bailout repayment. The New York Times finance reporter, Louise Story, explains why A.I.G.'s shareholders are holding out and what this means for the taxpayer.

AIG will sell the Asian arm of its life insurance business to British insurance giant, Prudential P.L.C. This international sale is the biggest since AIG was bailed out by the U.S. government in 2008 and will help the company repay some of its bailout money.

• MONEY TAKEOUT: New York Times business and finance reporter Louise Story previews some of the revelations set to unfold as the House begins hearings into the government's bailout of AIG. 
• SPORTS TAKEOUT: The Takeaway's sports contributor Ibrahim Abdul-Matin recaps the latest in tennis's Australian Open.
• LISTENERS TAKEOUT:  In advance of the President’s address tonight, our listeners describe the state of the union in six words.

Do you remember the headlines of a few months back, when AIG handed out $165 million in bonuses after taking a federal handout? Well, so does the Obama administration. This week they are poised to announce a new set of regulations on executive compensation. They are also nominating a so-called Pay Czar to monitor executive compensation. Louise Story, reporter for The New York Times, joins The Takeaway with more.

For more, read Louise Story's and Eric Dash's article, U.S. to Propose Wider Oversight of Compensation, in the New York Times.

Yesterday, Ed Liddy, the CEO of embattled insurance giant AIG, went to Capitol Hill to face down a wasps' nest of angry congressmen determined to make him justify the large bonuses company executives received. Todd Zwillich of Capitol News Connection swings by to give us his account of AIG's harrowing day on the Hill.

Outrage over the news that AIG employees will receive their enormous bonuses is widespread. Even President Obama suggested we simply tear up the bonus contracts and Iowa Senator Chuck Grassley suggested that the executives should consider doing the honorable thing a la seppuku. But not everyone thinks these bonuses are evil. One of those minority voices is Andrew Ross Sorkin, chief acquisitions and mergers correspondent for our partner, the New York Times, and he is here to make the case for the AIG bonuses.

For more, read Andrew Ross Sorkin's article, The Case for Paying Out Bonuses at A.I.G. in today's New York Times.

As the lavish AIG executive bonuses continue to infuriate the nation, the Obama administration is swearing to step in. But due to existing contracts and the rule of law, their hands may be tied. So what's a President to do? The New York Times' Jackie Calmes joins us to discuss.

For more, read Jackie Calmes' and Edmund L. Andrew's article, Obama in Effort to Undo Bonuses Granted by A.I.G., in today's New York Times.