The NCUA on Tuesday filed its ninth securities fraud lawsuit, this one in U.S. District Court inKansas against Barclay's Capital Inc.

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According to an NCUA release, the suit alleges Barclay's, theU.S. subsidiary of the British financial services firm, violatedfederal and state securities laws through misrepresentations in thesale of $555 million worth of mortgage-backed securities to failedcorporate credit unions U.S. Central FCU and Western CorporateFCU.

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“Trust and accountability are two cornerstones of our financialsystem,” said NCUA Board Chairman Debbie Matz. “As clearly outlinedin our complaint, Barclay's violated that trust by issuing faultydisclosures on securities underwritten by the firm.

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“As a result, two corporate credit unions collapsed, and theentire credit union industry experienced a crisis. Since then, NCUAhas successfully worked to restore stability to the credit unionsystem. Now we are working to hold Barclay's, and other responsibleparties, accountable for their actions.”

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The NCUA's complaint alleges Barclay's made numerousmisrepresentations and omissions of material facts in the offeringdocuments of the securities sold to the failed corporate creditunions.

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The complaint also alleges systemic disregard of theunderwriting guidelines stated in the offering documents. Thesemisrepresentations caused U.S. Central and WesCorp to believe therisk of loss was minimal when in fact the risk was substantial.

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The NCUA has previously filed similar actions against J.P.Morgan Securities, RBSSecurities, GoldmanSachs, Wachoviaand UBSSecurities.

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The agency has already settled claims worth more than $170million with Citigroup,DeutscheBank Securities and HSBC,making it the first federal regulatory agency for depositoryinstitutions to recover losses from investments in faultysecurities on behalf of failed financial institutions.

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If the NCUA recovers further damages from the seven remainingsuits, the funds would be applied toward the Temporary CorporateCredit Union Stabilization Fund, reducing the assessments currentlybeing paid by all federally insured credit unions.

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Those credit unions have until Oct. 9 to pay a 2012 corporate assessment of 9.5 basis points worth nearly $800million.

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