ALEXANDRIA, Va.–NCUA’s announcement last week that it had settled for $225 million a lawsuit with Morgan Stanley over mortgage-backed securities that had been sold to corporate credit unions is just the latest payment the agency has received as a settlement from a Wall Street firm.
Since 2011, other settlements have included:
- Wells Fargo on 10/2015, $53 million
- Barclays on 10/2015, $325 million
- Royal Bank of Scotland on 9/2015, $129.6 million
- JP Morgan Chase on 11/2013, $1.417 billion
- Bank of America on 3/2013, $165 million
- HSBC on 3/2012, for $5.25 million
- Citigroup on 10/2011, for $20.5 million
- Deutsche Bank on 10/2011 for $145 million
Net proceeds from all of the settlements are being used to pay claims against the failed corporate credit unions, including those of the Temporary Corporate Credit Union Stabilization Fund. The NCUA continues to pay down its borrowing from Treasury and has indicated that credit unions could see some repayments on their assessments paid to prop up the corporates, but not likely before 2021.
NCUA continues to pursue litigation in federal courts in New York, Kansas and California against financial firms, including RBS, Goldman Sachs, UBS and Credit Suisse, based on the sale of faulty securities that caused the collapse of five corporate credit unions.