ALEXANDRIA, Va. — NCUA has accepted a judgement offer of $129.6 million from Royal Bank of Scotland to resolve claims from losses related to purchases of residential mortgage-backed securities by Members United and Southwest corporate credit unions.
This is the credit union regulator's latest recovery from legal action following the corporate credit union crisis. More than $1.9 billion in legal recoveries have been obtained, and those funds are used to pay down the Temporary Corporate Credit Union Stabilization Fund assessments which were levied on CUs to cover the losses of the five failed corporates.
"NCUA has a statutory obligation to secure recoveries for credit unions and ensure that consumers remain protected," NCUA Board Chairman Debbie Matz said in a statement. "We can assure stakeholders that we will continue to aggressively pursue recoveries against Wall Street firms that contributed to the corporate crisis. Each recovery as well as our ongoing lawsuits further NCUA's goal of minimizing the losses of the corporate crisis and future costs to credit unions."
NCUA still has litigation pending against RBS in federal courts in Kansas and California related to sales of bad MBS to U.S. Central and Wescorp corporate credit unions. NCUA also has pending suits against Goldman Sachs, Wachovia, UBS, Barclays, Credit Suisse and Morgan Stanley.
