Court Dismisses NCUA Case Vs. Goldman Sachs, Grants Appeal On Timing
A federal judge in Los Angeles Friday ruled that National Credit Union Administration waited too long before filing its lawsuit against Goldman Sachs over $491 million in losses from residential mortgage-backed securities sold to U.S. Central FCU and Western Corporate FCU.
However, U.S. District Court Judge George Wu also said he would grant NCUA’s request for an interlocutory appeal to the Ninth Circuit Court of Appeals on the time-barred issue.
“The court grants the motion for interlocutory appeal on the question of whether the Extender Statute applies to extend the statute of repose…because this issue is a controlling question of law, has generated a substantial degree of disagreement, and its resolution can materially advance this litigation,” said Wu.
It was the second decision in a week that dismissed NCUA’s claims against brokerage firms that sold or underwrote residential mortgage-backed securities (RMBS) that caused the collapse of several corporates, including U.S. Central and WesCorp. A U.S. District Court in Kansas last week dismissed the agency’s suit vs. Barclays Capital and Credit Suisse, saying it was time-barred and that NCUA had not filed the case in time. (See related story in News Now, Court Dismisses NCUA Lawsuit Over Corporate CU Losses Vs. Barclays).continue reading »