The U.S. Court of Appeals for the Second Circuit has set the stage for a fascinating jurisdictional showdown in American International Group’s $10.5 billion mortgage-backed securities suit against Bank of America.

And it turns out that U.S. District Judge Mariana Pfaelzer in Los Angeles, who’s overseeing the portion of AIG’s suit related to Countrywide mortgage-backed securities, has opened an even squirmier can of worms in the case.

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