Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Space Coast CU Agrees To Dismiss Lawsuit with Barclays Capital, State Street
NEW YORK (10/23/13)--Space Coast CU has agreed to dismiss its lawsuit against Barclays Capital and State Street Corp. over collateralized debt obligations (CDOs) Barclays sold to now-defunct Eastern Financial Florida CU, a Space Coast attorney confirmed to News Now Tuesday.
 
The credit union has "resolved the case" and is "pleased with the result," said David Bishop, an attorney with the law firm Kirby McInerney LLP in New York, who represented Space Coast.
 
Space Coast, based in Melbourne, Fla., acquired Miramar, Fla.-based Eastern Financial Florida CU in June 2009 in an emergency merger approved by state regulators.
 
As "successor in interest" for Eastern Financial Florida, Space Coast filed a lawsuit in the U.S. District Court for the Southern District of Florida, in Fort Lauderdale. The case involved 12 CDOs sold to Eastern Financial between 2005 and 2007. 
 
The original suit involved instruments underwritten by Merrill Lynch, Pierce and Fenner Inc., J.P. Morgan Securities LLC, UBS Securities LLC and Barclays Capital, and rated by ratings agency The McGraw Hill Cos. (Standard & Poor's) and Moody's Investor Services.
 
Space Coast CU's suit against the other firms is still pending.
 
Space Coast CU was allowed to amend its complaint in March of this year "by alleging in detail, and with a plausible factual basis" the alleged fraud committed by defendants after a federal court judge dismissed without prejudice the credit union's $100 million lawsuit against Wall Street banks and ratings agencies over CDOs sold to Eastern Financial Florida CU. The lawsuit with Barclays Capital and State Street Corp. was carved out of the original lawsuit.


RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
12 24 ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
12 23 ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
12 23 ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
12 23 ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
12 23 ago