The NCUA has threatened to sue four investment banks if they don't refund $50 billion from the sale of mortgage-backed securities to five corporate credit unions that the agency conserved last year, The Wall Street Journal reported today.
When asked about the agency's conversations with Citigroup, Goldman Sachs, J.P. Morgan Chase and Merrill Lynch, NCUA spokesman Todd Harper told Credit Union Times that "we don't comment on ongoing legal matters."
Several credit union industry sources confirmed that the NCUA had told them that seeking the money back from the investment banks was a key part of its strategy.
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