NCUA Chairman Debbie Matz said Thursday she's pleased KansasFederal District Court denied the majority of defendants' motions to dismiss the agency's lawsuits for losses frommortgage-backed securities purchased by U.S. Central Federal CreditUnion.

“The Wall Street firms that created and sold these securitiesmaterially misrepresented the inherent level of risks toinvestors,” Matz said. “We will continue to vigorously pursue theselawsuits, and the others previously filed. As liquidating agent forU.S. Central, NCUA has a duty to maximize recoveries fromresponsible parties, in order to limit losses to the federallyinsured credit union system.”

NCUA filed two lawsuits against RBS Securities, Wachovia, andnine other defendants who were involved in issuing 29 residentialmortgage-backed securities purchased by U.S. Central. The lawsuits,which were consolidated by the court, alleged violations of federaland state securities laws and misrepresentations in the sale of thesecurities to U.S. Central. The court granted part of thedefendants' motions to dismiss and denied the remainder, with theresult that 80% of the claims continue forward, the NCUA said in arelease.