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The National Credit Union Administration (NCUA) has a reached an agreement with Credit Suisse arising from losses to Members United and Southwest corporate credit unions related to purchases of the bank’s residential mortgage-backed securities (RMBS). Under the agreement, Credit Suisse will pay $50.3 million in damages and interest.
Last month, NCUA accepted Credit Suisse's offer of judgment of $29 million in damages. That level increased to $50.3 million via prejudgment interest determined by the court, and. Credit Suisse will also be liable for attorneys' fees and expenses in an amount to be determined.
"NCUA's litigation efforts fulfill its statutory obligation to secure recoveries for credit unions and help protect consumers," said NCUA Board Chairwoman Debbie Matz. "These efforts will continue. We will aggressively pursue recoveries against the Wall Street firms that contributed to the corporate crisis and work to minimize net losses and provide a future rebate to credit unions."
However, NCUA will continue its federal lawsuit against Credit Suisse for sales of faulty residential mortgage-backed securities to U.S. Central, Southwest and WesCorp corporate credit unions.