RANCHO CUCAMONGA, Calif. — During a California/Nevada league-hosted conference call on the NCUA conservatorship of WesCorp, several participants urged legal action to seek an injunction.
Those proposing the legal action argued the case should be based on challenging the valuation of the CMOs and other investments in WesCorp's portfolio, beyond those in the Pimco report, which NCUA used as the basis for taking over WesCorp.
A spokesperson for the California league would only confirm that the conference call was held and that others are scheduled, but declined to provide further comment on the nature of what was discussed.
By law, no legal action can be taken until a 10-day stay has taken place. But even if such action were to be taken, sources told Credit Union Journal such litigation would be very unlikely to succeed, as courts almost always side with regulators in these cases.
