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The National Credit Union Administration recovesr nearly $400 million for member credit unions.

Consumer Protection, Inside the Beltway
Friday, November 06, 2015
The National Credit Union Administration recently announced a pair of settlement actions that will allow the agency to recover nearly $400 million for member credit unions.
The first is an agreement with Barclay’s Capital for $325 million to resolve claims from losses related to residential mortgage-backed securities by corporate credit unions that went bad. NCUA filed suit against Barclay’s in 2012 and will dismiss pending suits against the company with the settlement.
Barclay’s does not admit fault in the settlement. NCUA said it will use 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, NCUA is committed to pursuing recoveries against financial firms we maintain contributed to the corporate crisis,” NCUA Board Chairman Debbie Matz said in a statement announcing the action. “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.”
NCUA continues to pursue litigation in federal courts in New York, Kansas and California against financial firms, including Goldman Sachs, UBS, Credit Suisse and Morgan Stanley, based on the sale of faulty securities. The agency has other litigation pending against securities firms alleging violations of state and federal anti-trust law by manipulation of interest rates through the London Interbank Offer Rate (LIBOR) system.
In addition, Wachovia agreed to pay $53 million to resolve the agency’s claims arising from losses related to purchases of the securities by corporate credit unions. That brings the total amount recovered from the RMBS defaults to $2.2 billion.
NCUA filed suit against Wachovia in 2011. Wachovia does not admit fault in the settlement. 

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