Credit unions

WICHITA, Kan. – Several Wall Street banks told a federal appeals court Friday that confidential contingency agreements with lawyers representing NCUA on its corporate credit union suits contradicts NCUA’s own argument it should be afforded special powers to extend the statute of limitations on the multi-billion corporate claims.

WICHITA, Kan. – Focus of NCUA’s efforts to recover billions of dollars in losses for faulty mortgage-backed securities sold to five corporate credit union failures is slowly shifting to the federal appeals court here, which has been asked to determine whether the credit union regulator waited too long to file civil claims, some of them dating to securities sold as much as seven years ago.

WICHITA, Kan. – NCUA opened a new battle with Wall Street this afternoon by filing a new suit over the sale of faulty mortgage-backed securities to the failed corporates—the third one naming JP Morgan Chase as the defendant and ninth suit against a Wall Street entity.

NEW YORK – NCUA has joined a variety of creditors in the huge Residential Capital LLC bankruptcy seeking a mediator to review its claims of $300 million in recompense for the failures of U.S. Central FCU and WesCorp, among the credit union agency’s growing claims over the collapse of the corporate system.

SOUTHFIELD, Mich. – Cencorp said it is expecting the NCUA board to vote during Q1 on its merger with Alloya Corporate.

LOS ANGELES – NCUA has reached a negotiated settlement on civil negligence charges with former WesCorp FCU CFO Todd Lane, the last of what was once 19 defendants in the case.

ALEXANDRIA, Va. – NCUA is projecting an NCUSIF premium range in 2013 of 0 to 5 points of insured shares, and a Stabilization Fund assessment range of 8 to 11 basis points of insured shares. The combined projected range is 8 to 15 basis points, according to the agency’s new forecast.

WICHITA, Kan. – NCUA this morning sued Bear Stearns & Co., now a unit of JP Morgan Chase, over the sale of mortgage-backed securities to four corporate credit union failures, the 11th Wall Street bank targeted for culpability for the corporate debacle.

WICHITA, Kan. – Credit Suisse Securities said Friday in a motion to dismiss a civil suit brought by NCUA that the failed corporate credit unions it sold mortgage-backed securities to continued to buy risky MBS in order to boost investment returns even after they were repeatedly warned by NCUA of their strategies.

WICHITA, Kan. – NCUA urged a Federal court here Friday to reject a request by JP Morgan Chase to stay its suit against the Wall Street bank for the failure of U.S. Central FCU and WesCorp FCU, arguing a stay would risk the elimination of key documents in the case and delay the potential payout of hundreds of millions of dollars in damages to credit unions.

WICHITA, Kan. – JP Morgan Chase asked a federal court here Friday to postpone a civil suit brought against it by NCUA in the failure of four corporate credit unions until a federal appeals court has decided whether the credit union regulator waited too long to file similar securities claims against RBS Securities, Wells Fargo’s Wachovia Capital Markets and other Wall Street banks.

DENVER – A federal appeals court agreed this morning to hear an appeal by RBS Securities and Wells Fargo’s Wachovia Capital Markets on whether NCUA filed suit against the Wall Street banks too late to satisfy the statute of limitations on securities claims for the failure of the five corporate credit unions.

MIAMI – Shutts & Bowen, LLP, announced this afternoon it has hired Francois Henriquez, the former general counsel at U.S. Central FCU who headed the failed corporate credit union under NCUA conservatorship, to work in its credit union practice.

ALEXANDRIA, Va. – NCUA said this morning it lowered its loss projections for the corporate credit union resolution by as much as $400 million, due to improved performance by bonds associated with the bailout.

IRONADALE, Ala. – Corporate America CU said this morning it has hired Pete Pritts, the former CEO of Arizona’s FirstCorp CU, as president and CEO of the $2 billion corporate credit union.