Yesterday afternoon, a court in California ruled that former WesCorpCEO Robert Siravowas not entitled to depose NCUAChairman Debbie Matzand former board member Gigi Hylandas part of his efforts to defend himself against NCUA’s lawsuitclaiming he should be personally liablefornegligent oversight of the corporate in the period leading up to themeltdown. NCUA is arguing, among other things, that the corporate recklesslyoverweighted its investment portfolio with residential mortgage-backed securities.
Siravopointed out in seeking the depositionsthat, in a speech and presentation in 2010, NCUAChair Debbie Matzconfirmed that much of the blame for the problems with RMBSinvestments lies outside of the corporate credit unions, and that these investments were perceived by the NCUAand others in the industry to be reasonable, safe investments before the economic melt-down in 2008. In late 2008, in the midst of the economic crisis, NCUABoard memberGigi Hylandmade statements reflecting her belief that corporate credit unions, including their RMBSinvestments, were doing “just fine.” Siravo argued that these statementscut at the heart of the NCUA’s theory that somehowhe should have figured out the problems with RMBS faster than anyone else, even the governing agency that was responsible for overseeing the industry.
