The NCUA has received $400 million from Credit Suisse for claims filed in connection with purchases of residential mortgage-backed securities by three corporate credit unions, the agency announced Wednesday.

The agency said legal recoveries in connection with the failed corporate credit unions have reached $5.1 billion.

Last week, the agency announced that it had recovered $445 million from UBS in connection with similar claims.

“NCUA has pursued litigation for nearly six years with the aim of holding responsible parties accountable and reducing the burden of Stabilization Fund assessments on credit unions,” NCUA Acting Board Chairman J. Mark McWatters said.

The Credit Suisse settlement are for claims arising from losses that occurred as a result of the purchase of residential mortgage-backed securities by U.S. Central Federal Credit Union, Southwest Corporate Federal Credit Union, and Western Corporate Federal Credit Union.

The proceeds from the recoveries are used to pay claims against the five failed corporate credit unions, including those of the Temporary Corporate Credit Union Stabilization Fund.

NCUA will now dismiss its pending suit against Credit Suisse, which did not admit fault as part of the agreement.

In a separate suit filed against Credit Suisse, the NCUA received a judgement of $50.3 million and $9.75 in attorney's fees in 2016.

Instant Insights /

NCUA Receives $400 Million From Credit Suisse Settlement

Related Stories

Recommended For You