The National Credit Union Administration today joined the U.S. Department of Justice and other governmental plaintiffs in a $13 billion settlement with JPMorgan Chase and affiliated companies over sales of faulty mortgage-backed securities.
As part of the settlement, NCUA will receive $1.417 billion. The settlement resolves four lawsuits filed by NCUA as liquidating agent against JPMorgan Chase, Bear Stearns and Washington Mutual for losses incurred by failed corporate credit unions as a result of the purchases of the faulty securities.
NCUA Board Chairman Debbie Matz said: “This resolution, combined with the $335 million already recovered, will enable NCUA to greatly reduce the assessments that all credit unions have to pay."
Read the press release.
I wonder how much the lawyers got on this one. Oh well, at least the system recovered some of the ill gotten dollars that the 'to big to fail' crowd ripped us off for. It should be noted that the NCUA, as bumbling as I think they are, was the first agency to take legal action to recover funds for their institutions.
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