Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
NCUA Files Appeal In Goldman Sachs RMBS Lawsuit
LOS ANGELES (7/26/13)--The National Credit Union Administration filed a notice of appeal Monday in its lawsuit against Goldman Sachs over residential mortgage-backed securities (RMBS) in the U.S. District Court for the Central District of California-Western Division in Los Angeles.    
 
A federal judge in Los Angeles July 12 ruled NCUA waited too long before filing some of its claims against Goldman Sachs over $491 million in losses from RMBS sold to U.S. Central FCU and Western Corporate FCU, which no longer exist (News Now July 16).
 
U.S. District Judge George Wu granted NCUA's request for an interlocutory appeal, or an appeal on certain issues while other aspects of the case are still pending. This sends the case to the Ninth Circuit Court of Appeals on the question of whether NCUA's federal claims are time-barred, or whether an "extender statute" applies that NCUA argues would make the claims still valid. Judge Wu's decision did not dismiss NCUA's state-based claims, which will still move forward.
 
NCUA and Goldman continue to dispute the scope of the appeal and what happens to the remaining claims in the district court while the case is on appeal. NCUA and Goldman have both filed papers with Judge Wu this week regarding these issues. 
 
In the suit, the agency noted that U.S. Central and WesCorp purchased 21 RMBS from Goldman Sachs, which also acted as the underwriter (News Now July 16).
 
The Tenth Circuit Court of Appeals in Kansas also is reviewing the time-barred issues in a separate suit NCUA filed against RBS Securities.


RSS print
News Now LiveWire
.@TheNCUA approves modified stress test rule. Read #NewsNow here: http://t.co/RSZh59Ukkj
39 minutes ago
NCUA Ch. Matz said the FOM proposal is the result of enforcement actions taken where CUs advertised open FOMs.
1 hours ago
.@TheNCUA wants to know if there are other categories that should get automatic approval, staff says.
1 hours ago
Alumni,homeowner assoc,labor unions, electric coops,scouting & church groups,assn. to further culture of nt'l or ethnic group are auto OKed.
1 hours ago
Corporate separateness also would be required under FOM proposal. Separate physical location from FCU too.
1 hours ago