Banks in RMBS suit ordered to meet with NCUA by Oct. 30
NEW YORK (9/24/15)--Six banks that allegedly sold toxic mortgage-backed securities to corporate credit unions have until Oct. 30 to meet with the National Credit Union Administration (NCUA), per an order from U.S. District Judge Denise Cote of the U.S. District Court of the Southern District of New York.
Cote gave the order to Morgan Stanley and Co., Inc., Goldman Sachs and Co., Wachovia Capital Markets LLC, Barclays Capital Inc., UBS Securities LLC and Credit Suisse Securities (USA) LLC.
Those banks must hold in-person settlement or mediation talks with the NCUA. Each is a defendant in a lawsuit accusing them of causing the downfall of one or both of Southwest Corporate FCU and Members United Corporate CU.
Both corporates were placed into conservatorship in September 2010.
“NCUA intends to comply with the court’s order and meet with each defendant between now and Oct. 30 in an attempt to resolve the cases,” agency spokesperson John Fairbanks told News Now.
The banks must inform Cote of the date the talks will occur by next week.
With a recent settlement between the NCUA and the Royal Bank of Scotland, the agency has netted nearly $1.9 billion in legal recoveries from claims of faulty mortgage-backed securities causing the downfall of five corporate credit unions.