Barclays Bank agreed Oct. 19 to pay the NCUA $325 million to settle claims filed by the regulator. These claims arose from the purchases of mortgage-backed securities by corporate credit unions that are now defunct.

The case involved Barclays' sale of some $555 million in securities to the failed corporate credit unions WesCorp and U.S. Central in 2006 and 2007. This was one of many cases filed by the NCUA during the aftermath of the collapse of several large corporate credit unions.

The NCUA said it uses the net proceeds to reduce Temporary Corporate Credit Union Stabilization Fund assessments charged to federally insured credit unions to pay for the losses caused by the failure of five corporate credit unions.

“In order to help minimize losses and future costs to the credit union system, (the) NCUA is committed to pursuing recoveries against financial firms we maintain contributed to the corporate crisis,” NCUA Board Chairman Debbie Matz said in a news release. “The agency has a statutory obligation to secure recoveries for credit unions and ensure that consumers remain protected, and we take that responsibility very seriously.”

The NCUA first filed suit against Barclays in 2012, and the U.K.-based financial service firm did not admit guilt in that settlement.

The agency also said it has litigation pending against Goldman Sachs, UBS, Credit Suisse and Morgan Stanley stemming from the collapse of five corporate credit unions.

Instant Insights /

NCUA Settles With Barclays for $325 Million

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