WASHINGTON (11/21/13)--Credit Union National Association President/CEO Bill Cheney and National Credit Union Administration Chairman Debbie Matz each were quoted Wednesday in a Wall Street Journal article highlighting the U.S. Department of Justice's announcement that NCUA would receive $1.4 billion under the terms of a $13 billion settlement with JP Morgan Securities.
Lawsuits brought by the NCUA alleged JP Morgan oversold the quality of certain mortgage-backed securities (MBS's) it issued, which were sold to U.S. Central FCU, Western Corporate FCU and other corporates from 2006 to 2007. The corporates collapsed in 2009, and the NCUA, as their liquidating agent, sued a number of Wall Street firms that issued or underwrote the securities that the agency said contributed to the corporates' collapse.
"I think [the NCUA] absolutely should, on behalf of the credit unions, recover as much as possible," Cheney told the Journal.
Separately, Cheney also said Tuesday that the announcement gives even more weight to CUNA's recommendation that the Temporary Corporate Credit Union Stabilization Fund projected assessment range for next year be set at 0 basis points (bps). The NCUA is expected to discuss a projected assessment of 0 bps to 5 bps at its Thursday open board meeting (News Now Nov. 20).
NCUA Chair Matz told the Journal, in part, "In agreeing to this settlement, [J.P. Morgan] has taken a measure of responsibility for actions that caused severe damage to the credit-union system."