NCUA has recouped more than $5 billion from investment banks over the sale of faulty mortgage-backed securities to five failed corporate credit unions.
"The payment of over one billion dollars in legal fees to private counsel raises serious questions about the propriety of the NCUA's legal fee arrangements, including whether the arrangements were in the best interest of the NCUA," Representative Ann Wagner (R-MO) said in a March 1 letter to the agency's chairman, Mark McWatters. Wagner chairs the House Financial Services subcommittee on oversight.
Wagner is seeking information from NCUA regarding the agreement with the two law firms, including all records related to the selection of the law firms and all communications between the agency and the two law firms.
The two law firms are Korein Tillery and Kellogg, Huber, Hansen, Todd, Evans & Figel.
In comparison, the Federal Housing Finance Agency recovered more than $25 billion on behalf of mortgage giants Fannie Mae and Freddie Mac; but paid two different law firms, based on an hourly fee basis, more than $400 million.
The article notes NCUA met at least once with the law firms in an attempt to renegotiate the terms of the agreement.
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Update: Below is the Representative Wagner's letter to NCUA (click on image to enlarge). Unfortunately, the image quality of the letter is poor.
Claw back on Fenner time.
ReplyDeleteOne of the lawyers he paid is a bff.
Congress, DO YOUR JOB.
Once again an incompetent NCUA entered into a legal contract the benefits going to the law firms and not the credit unions they should be representing with fidelity. Follow the money. Someone at the NCUA got greased on these contract. This is not the exception to the rule at the NCUA. It is the rule. To Fenner: "You're fired!" Just who approved the damn contract? Fire them, too.
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