Defendants in the litigation flowing from the liquidation of Western Corporate Federal Credit Union have served notice to depose the NCUA Board in the case.
According to documents filed by the U.S. District Court for the Central District of California under Judge George Wu, the defendants Robert Siravo, Todd Lane, Robert Burrell, Thomas Swedberg and Timothy Sidley are seeking to question the board about mortgage-backed securities WesCorp purchased from J.P. Morgan Securities, RBS Securities and Goldman Sachs & Co.
Specifically, the defendants want to question the board about the “[t]he history, formation, risk, popularity, public perception, and industry perception” of residential mortgage backed securities, private label MBS, and option arm MBS between 2000 – 2007, along with the extent that CUs and Corporate CUs purchased those securities to diversify their investments during that period.
The defendants will also ask the NCUA Board about “[a]dvice and directives given by the NCUA to credit unions and corporate credit unions between 2000-2007” regarding those securities and their purchases.
