Brookfield Asset Management Inc. is Canada's biggest asset manager. Brookfield agreed to pay USD905 million to resolve a dispute regarding interest rate swaps. The settlement would be paid to American International Group Inc. (AIG).
The trial in US District Court in New York would be dismissed tied with the termination of the rate swaps. This was according to a statement issued by Brookfield today. The same statement showed that Brookfield had booked a liability of around USD14 billion on the contracts as of June 30.
In 2009, Brookfield sued AIG after claiming that the New York-based firm collapsed a year before. This triggered a default in the provision of the signed contract stating that the two 25-year interest rate swaps from 1990 were not paid.
In 2008, AIG was bailed out by taxpayers in the US and fully paid assistance last year. AIG said that the claims Brookfield alleged were made as the company had been seeking to avoid its obligations stipulated on the contracts.
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