The NCUA filed suit Tuesday against investment bank Goldman Sachs 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 federal credit unions.
It's the fourth suit stemming from the collapse of several corporate credit unions filed by the NCUA. The agency is seeking damages of almost $2 billion.
The NCUA alleges, in the lawsuit filed in Los Angeles, that the misrepresentations caused U.S. Central and WesCorp to believe the risk of loss associated with the investment was minimal.
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