As the liquidating agent, the NCUA said by law, it is the party, not members or others, to pursue actions first to recover monetary losses that followed the failure of New London Security Federal Credit Union.

The agency was responding to a suit initially filed by five members of New London in June seeking $4 million claiming board members, staff and the CU's accounting firm among others were negligent in supervising its financial adviser, Edwin F. Rachleff, who is now deceased. Rachleff's mismanagement led to the credit union's liquidation in 2008.

"As liquidating agent, the NCUA Board by law is the successor in interest to the rights of the members, and therefore the correct party to pursue such actions," wrote John McKechnie, NCUA director of public and congressional affairs, in a Dec. 13 e-mail to Credit Union Times.

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