Judge Dismisses NCUA Suit Against Barclay’s

July 11, 2013 by Credit Union Times

by. Robert McGarvey

Filed too late – that was why U.S. District Court Judge John W. Lungstrum in Kansas City, Kan., said he dismissed NCUA’s suit against a Barclay’s investment banking group.

The NCUA had filed the suit – triggered by a Barclay’s sale of some $555 million in securities to failed corporate credit unions WesCorp and U.S. Central in 2006 and 2007 – in September 2012.

In his ruling Lungstrum said the regulator, to comply with the statute of limitation, needed to have filed by March 20, 2012, which is three years after the NCUA conserved the two corporates.

Lungstrum earlier had thrown out some litigation against Credit Suisse, citing the same statute of limitation concerns.

NCUA spokesman John Fairbanks commented in an email: “We respectfully disagree with the rulings, and we are reviewing them. We will continue to vigorously pursue our claims against the parties who sold the faulty securities to the corporate credit unions.”