Credit Union Agency Hits Goldman With $491M Suit

Law360, New York (August 9, 2011, 3:48 PM EDT) -- The National Credit Union Administration filed a $491 million lawsuit Tuesday in California against Goldman Sachs & Co. over mortgage-backed securities, part of a $2 billion litigation blitz by the agency tasked with recovering costs associated with credit unions' failure.

Goldman's misrepresentations regarding securities it sold that were tied to the housing market left two federal credit unions — U.S. Central and Western Corporate — exposed to substantial risk, the NCUA said. The agency, which already has filed suit against J.P. Morgan Securities and RBS Securities...
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