Just two days after over $0.4 billion was collected for losses suffered on residential mortgage-backed securities by failed corporate credit unions, recoveries have climbed past $5 billion.
On Monday, the
National Credit Union Administration announced that it collected $445 million from UBS to settle RMBS losses at two failed corporate federal credit unions.
That brought RMBS recoveries collected on behalf
of several failed corporate credit unions to $4.8 billion.
On Wednesday, the NCUA reported another settlement reached.
The latest agreement was with Credit Suisse.
According to the regulator, the investment banking firm has paid $400 to settle
claims arising from losses tied to RMBS purchases by three failed corporate credit unions: U.S. Central Federal Credit Union, Southwest Corporate Federal Credit Union, and Western Corporate Federal Credit Union.
U.S. Central and Western Corporate were both forced into conservatorship in March 2009, while Southwest collapsed in September 2010.
NCUA will dismiss its pending lawsuit against Credit Suisse, which doesn’t admit fault as part of the agreement.
It’s the second settlement reached with Credit Suisse. The first, for more than $60 million, was reached in April 2016.
The latest agreement brings to $5.1 billion the amount that the NCUA has collected on behalf of failed corporate credit unions.
“NCUA has pursued litigation for nearly six years with the aim of holding responsible parties accountable and reducing the burden of Stabilization Fund assessments on credit unions,” NCUA Acting Board Chairman J. Mark McWatters said in the news release. “As NCUA continues its efforts, we will strive to provide complete, easy-to-access information about the settlements, legal fees, and related costs of litigation. We will also continue to work to control the costs to credit unions of resolving the corporate credit union collapse.”
