Wednesday, May 3, 2017

Credit Suisse Settles with NCUA over Toxic Mortgage Securities

The National Credit Union Administration (NCUA) announced that it received $400 million from Credit Suisse for claims arising from losses related to purchases of toxic residential mortgage-backed securities by U.S. Central Federal Credit Union, Southwest Corporate Federal Credit Union, and Western Corporate Federal Credit Union.

As a result of the settlement agreement, NCUA will dismiss its pending lawsuit against Credit Suisse, which does not admit fault as part of the agreement.

NCUA announced that aggregate gross legal recoveries by the NCUA on behalf of five failed corporate credit unions that purchased residential mortgage-backed securities have reached $5.1 billion.

Read the press release.

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