Wachovia Sued Over MBS Sales To Failed Credit Unions

Law360, New York (November 29, 2011, 6:12 PM EST) -- The National Credit Union Administration sued Wachovia Capital Markets LLC in Kansas federal court on Monday to hold it responsible for alleged untrue statements and omissions in its underwriting or sale of about $200 million in residential mortgage-backed securities.

The NCUA is bringing the lawsuit against Wachovia, now known as Wells Fargo Securities LLC, as the liquidating agent of two defunct federal credit unions that purchased the RMBS. Virtually all of the securities were rated as triple-A at the time they were issued, but they have...
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