Monday, November 14, 2011

NCUA Announces Two Settlements over the Sale of Risky MBS

NCUA has reached settlements with Citigroup and Deutsche Bank Securities over the sale of risky residential mortgage-backed securities to five failed corporate credit unions.

The settlements total $165.5 million. Citigroup agreed to pay $20.5 million, while Deutsche Bank Securities will pay $145 million. As part of the settlement, neither Citigroup nor Deutsche Bank Securities admitted fault.

The settlement will help lower future assessments paid by credit unions associated with the five failed corporate credit unions.

Read NCUA press releases on Citigroup Settlement and Deutsche Bank Securities Settlement.
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1 comment:

  1. AnonymousNovember 14, 2011 at 9:53 PM

    Keith-
    What is the pay back. Looks like the credit unions are getting back about $.05 for every $1 in losses. Score another victory for the NCUA. The NCUA's Office of Inspector General (OIG) should sue the NCUA for its negligence in contributing to the corporate credit union failures. NCUA had examiners on site full time at both USCentral & WesCorp - see what good that did the credit union community. Now Citi & Deutsche throw the NCUA breadcrumbs & the NCUA claims victory. When it comes to the NCUA one thing is certain...You can't fix dumb.

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