The NCUA has filed another lawsuit against a Wall Street bank for selling bad mortgage-backed securities to now-failed corporate credit unions.
The most recent suit, filed in U.S. District Court in Kansas against UBS Securities, alleges the New York investment bank violated federal and state securities laws through misrepresentations in the sale of mortgage-backed securities to U.S. Central FCU and Western Corporate FCU.
The price paid for the securities by U.S. Central and WesCorp exceeded $1.1 billion. Both corporates subsequently failed and left federally insured credit unions holding a $50 billion tab for the legacy assets they left behind.
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