The NCUA said Monday it has reached settlements totaling $165.5million with Citigroup and Deutsche Bank Securities over the salesof residential mortgage-backed securities to the five corporatecredit unions that failed.

The settlements, in which the banks admitted no guilt, are for$20.5 million from Citigroup and $145 million from Deutsche BankSecurities. The agency reached the settlements without filinglawsuits against the banks.

“We are fulfilling our statutory responsibility to securemaximum recoveries for credit unions and ensure that consumersremain protected,” said NCUA Board Chairman Debbie Matz.

The agency will use the money to lower the future costs tonatural person credit unions for rescuing the corporates.

The agency has lawsuits pending against J.P. Morgan Securities, RBS Securities and Goldman Sachs fornot fully disclosing the risks when it sold RMBs to thecorporates.

The agency has filed two suits against RBS Securities, one for$685 million and one for $565 million. It is suing Goldman Sachsfor $491 million. And it sued J.P. Morgan Securities, for $278million in damages.

The collapse of the housing market caused the value of thosesecurities to plummet, leading to massive losses to thecorporates.

That convergence of events required the NCUA to rescue some ofthem, with the help of a loan from the Treasury Department. Thecredit union system is paying for the rescue through annualassessments. This year's assessment was 25 basis points. The agencyhas estimated that next year's assessment will be between 8 and 11basis points.

The corporate credit unions that failed are U.S. Central,Western Corporate, Members United, Southwest Corporate andConstitution Corporate.