NCUA Reviewing RMBS Court Decisions To Decide What’s Next

The National Credit Union Administration Board is reviewing its options and will pursue its claims vigorously. That is what the agency said after a federal judge in Los Angeles Friday ruled NCUA waited too long before filing some of its claims against Goldman Sachs over $491 million in losses from residential mortgage-backed securities (RMBS) sold to U.S. Central FCU and Western Corporate FCU, which no longer exist.

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 decision affects the federal claims in the case, but not the state-based claims, which will still move forward, said NCUA.

“NCUA is reviewing the judges’ holdings in the Goldman Sachs, Barclays and Credit Suisse suits and will determine the appropriate course of action based on that review,” said John Fairbanks, public affairs specialist with NCUA’s Office of Public and Congressional Affairs.

“NCUA has substantial claims against these and other companies who sold faulty securities to the corporate credit unions, and the agency will vigorously pursue those claims,” Fairbanks told News Now.

In Friday’s decision, Wu said, “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.”

continue reading »

More News