The NCUA on April 15 announced a settlement of $69.8 million against UBS for claims stemming from losses of two corporate credit unions.
The settlement stems from litigation against UBS for losses by Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union related to purchases of residential mortgage backed securities. While the amount does not yet include attorneys' fees and expenses, the settlement increased from the original amount accepted by the regulator in February from $33 million in damages.
"Part of [the] NCUA's comprehensive strategy for resolving the corporate crisis has been an aggressive litigation effort to secure recoveries from the Wall Street firms whose sale of faulty securities precipitated the crisis," NCUA Board Chairman Debbie Matz said. "Because of our ongoing efforts to hold responsible parties accountable, we are minimizing net losses to credit unions and should ultimately be able to provide a future rebate to credit unions for their Temporary Corporate Credit Union Stabilization Fund assessments."
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