U.S. Rep. Darrell Issa (R-Calif.) confirmed during CUNA'sGovernmental Affairs Conference Feb. 25 that the net amount of theJPMorgan settlement applied to the credit union corporatestabilization fund was a little more than $1 billion.

An unnamed source from the NCUA had told Credit UnionTimes the agency received $1.073 billion net from theoriginal $1.4 billion settlement.

That means lawyers pocketed nearly $350 million in the deal.

“That's my understanding – is the attorneys did much better thanwe did,” Issa told Credit Union Times when asked about thenet amount of the settlement.

Issa was critical in 2012 of the contingency agreement the NCUA secured with attorneys to sueWall Street banks over corporate credit union losses. As Chairmanof the House Oversight and Government Reform Committee, Issaquestioned whether the NCUA had violated an executive order thatbarred federal agencies from contingency deals. NCUA Inspector General William DeSarno responded, saying the feeswere reasonable and permissible.

NCUA General Counsel Mike McKenna said Feb. 13 he could not reveal the net amount ofthe settlement because it would compromise ongoing negotiations inpending suits against other investment banks.

Issa was also asked if he was satisfied with the outcome of thesettlement.

“I’m not really. Often, these settlements end up being moreabout who scores a big dollar figure rather than do we reallyprovide aid for people that have been hurt and quite frankly areasonable level of assurance that it won't happen again. I wish wecould have done better but I wasn't at the table,” Issa said.

“To be honest, I think (DOJ) picked out JP Morgan rather thanrealizing that it was much broader and that's one of the challengesis that you have a settlement that really is not mired with equalplayers,” he added.

The NCUA still has several active lawsuits against other WallStreet banks that it alleges misrepresented risks on securitiessold to five failed corporate credit unions. The most recentsuits were filed on Sept. 23, 2013, against eight banks that soldnearly $2.4 billion in mortgage-backed securities to SouthwestCorporate Federal Credit Union and Members United Corporate FederalCredit Union.

In his remarks at GAC, Issa said Washington should act toeliminate the unfair advantages given to too-big-to-fail banks overcredit unions and community banks.

The California congressman also criticized regulators sayingthey have increased regulatory burdens on small community financialinstitutions. Federal regulations are forcing credit unions toconsolidate, he said, and creating mega credit unions that look anawful lot like mega banks. The very identity of credit unions couldbe destroyed in the process, he added.