NCUA Sues Morgan Stanley Over $556M RMBS Sale

Law360, New York (August 30, 2013, 5:14 PM ET) -- Morgan Stanley & Co. Inc. and Saxon Asset Securities Co. have been hit with a federal suit in Kansas, with the National Credit Union Administration looking to recoup losses from $556 million of residential mortgage-backed securities sold to credit unions, according to a Friday statement.

The NCUA contends that the representations and warranties of the residential mortgage-backed securities, which were sold to U.S. Central Federal Credit Union and Western Corporate Federal Credit Union before the recession, contained false and misleading information that helped tank two of...
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