Friday, September 7, 2012

NCUA Sues UBS Securities

The National Credit Union Administration (NCUA) is suing UBS Securities over the sale of more than $1.1 billion of mortgage-backed securities to U.S. Central Federal Credit Union (US Central) and Western Corporate Federal Credit Union (WesCorp). Both corporate credit unions subsequently failed.

The lawsuit, which was filed in Federal District Court in Kansas, alleges UBS Securities violated federal and state securities laws. NCUA argues that UBS Securities made numerous misrepresentations and omissions of material facts in the offering documents of the securities sold to the failed corporate credit unions.

The complaint also claims systemic disregard of the underwriting guidelines stated in the offering documents.

These misrepresentations caused US Central and WesCorp to believe the risk of loss was minimal.

In its complaint, NCUA requested a jury trial.

NCUA has filed five similar lawsuits against J.P. Morgan Securities, LLC, RBS Securities, Goldman Sachs, and Wachovia. In addition, the agency has settled claims worth more than $170 million with Citigroup, Deutsche Bank Securities, and HSBC.

Read the press release. Read the complaint.
Posted by at
Labels: , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.