Agency says corporate rescue fund can't count on recouping any losses in lawsuits against investment firms.
Corporate rescue assessment on the list.
The NCUA sued investment bank Goldman Sachs last week, seeking damages of more than $491 million and alleging misrepresentations by the firm when selling mortgage-backed securities to U.S Central and Western Corporate credit unions.
Not enough CUs prepaid to launch the program.
Ohio-based corporate pledges $604,533 as deadline arrives for commitments.
Correction: Deadline arrives today for commitments; NCUA will announce results on Aug. 9.
The NCUA has sued RBS Securities for $685 million, alleging that that firm misled Western Corporate FCU (WesCorp) when it sold it mortgage-backed securities.
Second suit against RBS Securities seeks $685 million for mortgage-backed securities sold to WesCorp.
There is, we are told, no such thing as a free lunch. For the NCUA, however, there may well be free money.
Credit unions and their trade groups appear to be voicing support for the NCUA plan to allow credit unions to prepay some of the cost of the bailout of corporate credit unions.