NCUA Hits Setback In Lawsuit Against Credit Suisse

Posted by Orb Staff on April 11, 2013 No Comments
Categories : Residential Mortgage

13634_ncua NCUA Hits Setback In Lawsuit Against Credit Suisse A federal court in Kansas City, Kan., has dismissed some of the claims in the $590 million lawsuit filed by the National Credit Union Administration (NCUA) against Credit Suisse over residential mortgage-backed securities (RMBS) sold to three now-defunct corporate credit unions.

CUNA News reports that U.S. District Judge John W. Lungstrum dismissed NCUA's claims on 12 of the 20 RMBS certificates on which Credit Suisse served as underwriter or seller.

‘Plaintiff did not file this suit within three years after its appointment as conservator for WesCorp and U.S. Central on March 20, 2009,’ said Lungstrum in his ruling. ‘Accordingly, plaintiff's claims on behalf of those credit unions are timely only if the extender statute's three-year limitations period was tolled in some manner.’

However, the judge rejected Credit Suisse's motion to dismiss on the charges involving the other eight certificates and to relocate the case to another venue. Neither CUNA nor Credit Suisse commented on the ruling.

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