Several Wall Street banks and credit rating agencies are claiming that the former Eastern Financial Florida Credit Union knew the risks going in before investing in $100 million in collateralized debt obligations.
The risks tied to collateralized debt obligations remains the focal point of Space Coast Credit Union’s lawsuit against Wall Street banks and credit raters.
Defendants tell judge in motion seeking dismissal that former credit union was well informed of risks in collateralized debt obligations.
In a $100 million lawsuit from Space Coast Credit Union against several Wall Street banks and credit rating agencies, a federal judge has ordered the parties to get together at a nonbinding mediation session.
More than a week after Space Coast Credit Union announced its mortgage securities lawsuit against several Wall Street banks, a judge ordered mediation.
Florida CU names Wells Fargo, J.P. Morgan, Merrill Lynch and others for creating phony demand for residential mortgage loans.
The $3.1 billion Space Coast Credit Union has filed a suit against two investment firms over the alleged misrepresentation of a collateralized debt obligation that the cooperative said led to financial losses.
Space Coast CU is suing Barclays and State Street Securities over investment losses that led to its takeover of Eastern Financial CU.
Three days after the NCUA took control of Eastern Financial Florida Credit Union, Space Coast Credit Union, appointed by the regulator to temporarily manage the Miramar, Fla.-based financial institution, has proposed a merger of the two credit unions.