Kansas Court Moves NCUA’s Corporate Loss Lawsuits Forward
NCUA Chairman Debbie Matz said Thursday she’s pleased Kansas Federal District Court denied the majority of defendants’ motions to dismiss the agency’s lawsuits for losses from mortgage-backed securities purchased by U.S. Central Federal Credit Union.
“The Wall Street firms that created and sold these securities materially misrepresented the inherent level of risks to investors,” Matz said. “We will continue to vigorously pursue these lawsuits, and the others previously filed. As liquidating agent for U.S. Central, NCUA has a duty to maximize recoveries from responsible parties, in order to limit losses to the federally insured credit union system.”