ALEXANDRIA, Va. (8/28/13)--The U.S. 10th Circuit Court of Appeals issued a ruling Tuesday that will allow the National Credit Union Administration to move forward with its lawsuit against 12 firms, including RBS Securities, which claims losses stemming from residential mortgage-backed securities (RMBS) sold to corporate credit unions.
The agency asked the court on July 31 to expedite its review of an earlier Kansas federal court's ruling that dismissed the claims against Barclays Capital on the grounds they were time-barred and the NCUA hadn't filed the case in time.
NCUA Chair Debbie Matz Tuesday evening issued this statement: "We're pleased with the court's decision. We will continue to pursue our claims against firms that sold faulty mortgage-backed securities to corporate credit unions. As liquidating agent for the corporate credit unions, NCUA has a duty to maximize recoveries from responsible parties in order to limit losses to federally insured credit unions."
As noted, the NCUA filed the lawsuit as the liquidating agent for the corporates. Its lawsuits claim that the brokers' offering documents for the RMBS had material misrepresentations about the underlying loans that backed the securities.
NCUA has filed lawsuits against Barclays Capital, Credit Suisse, Goldman Sachs, J.P. Morgan Securities, RBS Securities, UBS Securities, Wachovia, Washington Mutual, and Bear Stearns alleging violations of federal and state securities laws in the sale of mortgage-backed securities to the five corporate credit unions.
In related actions, the agency has reached $335 million in settlements with Bank of America, Citigroup, Deutsche Bank Securities and HSBC.