{"id":5504,"date":"2013-09-27T00:00:00","date_gmt":"2013-09-27T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/09\/ncua_sues_morgan_stanley_jpmor"},"modified":"2022-05-05T08:39:21","modified_gmt":"2022-05-05T13:39:21","slug":"ncua-sues-morgan-stanley-jpmor","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ncua-sues-morgan-stanley-jpmor\/","title":{"rendered":"NCUA Sues Morgan Stanley, JPMorgan, UBS, & Other Banks Over $2.7B in Allegedly Fraudulent RMBS Sales to Credit Unions"},"content":{"rendered":"

The National Credit Union Administration has filed residential mortgage-backed securities lawsuits against JPMorgan (JPM)<\/a>, Morgan Stanley (MS)<\/a>, UBS (UBS)<\/a>, Royal Bank of Scotland Group (RBS), Barclays (BARC), and Credit Suisse (CS) accusing the financial firms of selling $2.7 billion of these fraudulent securities to the credit unions. The Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union paid over $416 million for the RMBS in the case against Morgan Stanley and $1.9 billion from the other defendants. One of the credit unions contends that Wachovia (WB), Goldman Sachs (GS), Ally Securities and Wells Fargo (WFC) also defrauded it.<\/p>\n

According to the NCUA\u2019s RMBS fraud lawsuits, the investment banks issued misrepresentations related to the underwriting and sale of the securities. Offering documents allegedly contained false statements or omitted facts that were material. The government regulator is accusing the originators of systematically ignoring underlying guidelines in offering documents, which made the mortgage-backed securities\u2019 risks higher than what was presented.<\/p>\n

The MBS fraud lawsuits make claims under state and federal securities laws. Whatever is recovered will go toward the Temporary Corporate Credit Union Stabilization Fund.<\/p>\n

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

The National Credit Union Administration has filed residential mortgage-backed securities lawsuits against JPMorgan (JPM), Morgan Stanley (MS), UBS (UBS), Royal Bank of Scotland Group (RBS), Barclays (BARC), and Credit Suisse (CS) accusing the financial firms of selling $2.7 billion of these fraudulent securities to the credit unions. The Members United Corporate Federal Credit Union and […]<\/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],"tags":[2557],"class_list":["post-5504","post","type-post","status-publish","format-standard","hentry","category-mortgagebacked-securities","tag-rmbs"],"yoast_head":"\nNCUA Sues Morgan Stanley, JPMorgan, UBS, & Other Banks Over $2.7B in Allegedly Fraudulent RMBS Sales to Credit Unions — Investor Lawyers Blog — September 27, 2013<\/title>\n<meta name=\"description\" content=\"The National Credit Union Administration has filed residential mortgage-backed securities lawsuits against JPMorgan (JPM), Morgan Stanley (MS), UBS (UBS), — September 27, 2013\" \/>\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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