Credit Union Admin Hits RBS With $629M Securities Suit

Law360, New York (July 18, 2011, 10:19 PM EDT) -- The National Credit Union Administration on Monday filed a $629 million suit in California accusing RBS Securities Inc. of misleading credit unions about the safety of mortgage-backed securities and contributing to Western Corporate Federal Credit Union's insolvency.

The suit, filed on behalf of San Dimas, Calif.-based WesCorp, is the third such suit in the NCUA's effort to recover billions of dollars for failed wholesale credit unions that claim investment banks misled them about mortgage-backed securities.

"Those who caused the problems in the wholesale credit unions should...
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