The NCUA on Monday filed suit to recover more than $800 million from JP Morgan Securities and RBS Securities for losses from what the agency alleges were faulty securities.
The agency, which says other suits will follow to recover billions in losses, alleges that the securities caused heavy losses at the five corporate credit unions that have been conserved and closed.
The suits allege these firms made "numerous factual misrepresentations" that caused the corporates to believe that the risks were minimal.
"Those who caused the problems in the wholesale credit unions should pay for the losses now being paid by retail credit unions," NCUA Chairman Debbie Matz said in a statement.
The NCUA initiated a rescue plan for the corportates that is likely to cost the industry billions of dollars between now and 2020.