The regulator for the nation’s credit unions has agreed to another settlement that is tied to investments in faulty residential mortgage-backed securities.
At the center of the lawsuit filed by the National Credit Union Administration are RMBS investments by corporate credit unions that subsequently failed.
The latest action involves RMBS purchased by Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union.
Both financial institutions failed in 2010.
The NCUA announced Thursday that it agreed a settlement with Credit Suisse,
which offered $29 million to resolve the claims.
“The offer of judgment includes $29 million in damages plus prejudgment interest in an amount to be determined by the court as well as reasonable attorneys’ fees to be determined by agreement between the parties or by the court,” the NCUA’s statement said.
Other NCUA litigation is still pending
against Credit Suisse related to RMBS losses at U.S. Central Corporate Federal Credit Union and Western Corporate Federal Credit Union, which both failed in 2009.
According to the regulator, the Credit Suisse deal pushes its total recovery from RMBS losses suffered by the failed corporate credit unions past $2.5 billion.
Plus, additional litigation is still pending against various RMBS trustees.
