ResCap Balks At Credit Union's $200M In Claims

Law360, Los Angeles (June 24, 2013, 4:45 PM EDT) -- Bankrupt Residential Capital LLC on Thursday urged a New York bankruptcy court to disallow and expunge $200 million in claims submitted by the National Credit Union Administration over alleged residential mortgage-backed securities fraud, saying the claims are baseless and barred by the statute of limitations.

ResCap said Thursday a total of 11 claims submitted by the National Credit Union Administration in its role as liquidating agent for Western Corporate Federal Credit Union and U.S. Central Federal Credit Union should be dropped, arguing the credit unions' recklessness and a marketwide downturn — not fraudulent activity by ResCap...
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