{"id":5186,"date":"2011-07-26T00:00:00","date_gmt":"2011-07-26T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/07\/629m_mortgagebacked_securities"},"modified":"2022-04-04T15:51:47","modified_gmt":"2022-04-04T20:51:47","slug":"629m-mortgagebacked-securities","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/629m-mortgagebacked-securities\/","title":{"rendered":"$629M Mortgage-Backed Securities Lawsuit Blames RBS Securities and Other Financial Firms For Bankruptcy of Western Corporate Federal Credit Union in 2009"},"content":{"rendered":"

The National Credit Union Administration has filed a $629 million securities fraud <\/a>lawsuit against RBS Securities, Wachovia Mortgage Loan Trust LLC, Nomura Home Equity Loan Inc., Greenwich Capital Acceptance Inc., Lares Asset Securitization Inc., IndyMac MBS Inc., and American Home Mortgage Assets LLC. The NCUA is accusing the financial firms of underwriting and selling subpar mortgage-backed securities, which caused Western Corporate Federal Credit Union to file for bankruptcy, as well as of allegedly violating state and federal securities laws.<\/p>\n

The defendants are accused of misrepresenting the nature of the bonds and causing WesCorp to think the risks involved were low, which was not the case at all. NCUA says that the originators of the securities \u201csystematically disregarded\u201d the Offering Documents\u2019 underwriting standards. The agency blames broker-dealers and securities firms for the demise of five large corporate credit union: WesCorp, US Central, Members United Corporate, Southwest Corporate, and Constitution Corporate.<\/p>\n

Last month, NCUA filed separate complaints against JPMorgan Chase Securities and RBS Securities. The union believes that those it considers responsible for the issues plaguing wholesale credit unions should cover the losses that retail credit unions are having to cover. NCUA says it may file up to 10 mortgage-backed securities complaints seeking to recover billions of dollars in damages. As of now, it is seeking to recover $1.5 billion.<\/p>\n

NCUA acts as the \u201cliquidating agent\u201d for failed credit unions. Wholesale credit unions provide electronic payments, check clearing, investments and other services to retail credit unions, which actively work with borrowers.<\/p>\n

NCUA sues JPMorgan and RBS to recover losses from failed institutions<\/a>, Housing Wire, June 20, 2011<\/p>\n

NCUA seeks $629M in damages from RBS Securities<\/a>, Credit Union National Association, July 19, 2011<\/p>\n

Feds Sue Bankers Over Fall in Bonds<\/a>, The Wall Street Journal, June 21, 2011<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The National Credit Union Administration has filed a $629 million securities fraud lawsuit against RBS Securities, Wachovia Mortgage Loan Trust LLC, Nomura Home Equity Loan Inc., Greenwich Capital Acceptance Inc., Lares Asset Securitization Inc., IndyMac MBS Inc., and American Home Mortgage Assets LLC. The NCUA is accusing the financial firms of underwriting and selling subpar […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3757,3999,3741],"tags":[],"class_list":["post-5186","post","type-post","status-publish","format-standard","hentry","category-mortgagebacked-securities","category-rbs-securities","category-securities-fraud"],"yoast_head":"\n$629M MBS Lawsuit Blames RBS Securities and Other Financial Firms For Bankruptcy | Investor Lawyers<\/title>\n<meta name=\"description\" content=\"The National Credit Union Administration has filed a $629 million securities fraud lawsuit against RBS Securities, Wachovia Mortgage Loan Trust LLC, — July 26, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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