US-based American International Group (AIG) is planning to sue Bank of America over hundreds of mortgage-backed securities that led to the global financial crisis.

The suit is seeking more than $10bn in losses and $28bn of investments and is believed to be the largest mortgage –security-related action filed by a single investor.

The AIG suit claims that Bank of America and its Merrill Lynch and Countrywide Financial units misrepresented the quality of the mortgages placed in securities and sold to investors, according to a report in the New York Times.

AIG is preparing similar suits against other large financial institutions including Goldman Sachs, JPMorgan Chase and Deutsche Bank, says the Times, as part of a litigation strategy aimed at recovering some of the billions in losses the insurer sustained during the financial crisis.