Credit Union Agency Sues Barclays Over $555M In Risky RMBS

Law360, New York (September 25, 2012, 9:16 PM EDT) -- The National Credit Union Administration Board on Tuesday hit Barclays Capital Inc. with a suit alleging it had misrepresented the quality of more than $555 million in residential mortgage-backed securities bought by two defunct credit unions.

The regulator, suing in Kansas federal court as the liquidating agent for U.S. Central Federal Credit Union and Western Corporate Federal Credit Union, claims the RMBS were sold to the two banks with top ratings, but were in fact far riskier than represented. BCAP LLC and Securitized Asset Backed Receivables...
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