Press Release | NCUA Files Suit Against Goldman Sachs In Effort to Recover Billions

NCUA Files Fourth Suit in String Against Securities Firms to Recover Billions

Recoveries Will Benefit All Federally Insured Credit Unions

ALEXANDRIA, Va. (Aug 9, 2011) – The National Credit Union Administration filed suit today in California against New York firm Goldman Sachs & Co. alleging violations of federal and state securities laws, as well as misrepresentations in the sale of securities to now-failed U.S. Central and Western Corporate federal credit unions.

“NCUA continues to carry out our responsibility to do everything reasonable in our power to seek maximum recoveries,” said NCUA Board Chairman Debbie Matz. “By these actions we intend to hold responsible parties accountable. Those who caused the problems in the wholesale credit unions should pay for the losses now being paid by retail credit unions.”

As liquidating agent for the failed corporate credit unions, NCUA has a statutory duty to seek recoveries from responsible parties to minimize cost to its insurance funds and the credit union industry.

This action seeks damages in excess of $491 million from Goldman Sachs, bringing the total sought in the four lawsuits filed to date to nearly $2 billion.

NCUA’s new suit against Goldman Sachs claims the sellers and underwriters of the questionable securities made numerous material misrepresentations in the offering documents. These misrepresentations caused the corporate credit unions to believe the risk of loss associated with the investment was minimal, when in fact the risk was substantial.

The mortgage-backed securities experienced dramatic, unprecedented declines in value, effectively rendering five corporates insolvent. The combined suits are the culmination of lengthy investigations into the circumstances surrounding the purchases of these securities.

This law suit follows three similar legal proceedings, two filed in the Federal District Court of Kansas June 20 against J.P. Morgan Securities, LLC, and RBS Securities, and one in the Federal District Court in Central California also against RBS July 18. Anticipating a total of five to10 actions, additional lawsuits may follow in order to recover losses from the purchase of securities that caused the failures of five, large wholesale credit unions.

Any recoveries from these legal actions would reduce the total losses resulting from the failure of the five corporate credit unions. The five wholesale credit unions placed into NCUA conservatorship and now liquidated are: U.S. Central, Western Corporate, Southwest Corporate, Members United Corporate, and Constitution Corporate.

Corporate credit unions are wholesale credit unions that provide various services to retail credit unions, which in turn serve consumers, or natural persons. Natural person credit unions rely on corporate credit unions to provide them such services as check clearing, electronic payments and investments.

“While the credit union industry generally fared better than the rest of the financial world over the last few years, the corporate credit union collapse remains the largest crisis ever faced by credit unions,” said Matz. “Fortunately, given the liquidity in the system, the average consumer is insulated from these past losses. However, it remains our statutory duty to replenish the insurance fund that protects consumer deposits by seeking recoveries.”
This lawsuit was filed today in the U.S. District Court for the Central District of California. NCUA will provide electronic copies of the complaint once available. To request a copy of the complaint, send an email to pacamail@ncua.gov.

NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

– NCUA –

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NCUA Files Fourth Suit in String Against Securities Firms to Recover Billions

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Comments
11 Responses to “Press Release | NCUA Files Suit Against Goldman Sachs In Effort to Recover Billions”
  1. Jim Bethea says:

    I hope they cripple Goldman & Sachs ~ it is the breeding grounds for the Sec of Treasuries for the past several ~ Paulson was going to be served for fraud on Mon, resigned on Fri before being served – and was next appointed as Sec of Tres – Geithner was charged with tax evasion from the same european owned IRS – said they settled this issue so he could be in charge of the Treasury. The same Tres that gave the privately owned IRS the power to collect money for the Fed Res who is owned by the same people…

    Goldman & Sachs were the first at the line to get 15 billion dollars from the TARP money for AIG’s obligations — this is not to be confused with the other money that G&S go so they would not fail —

    During the time G & S was taking taxpayer’s money, they were building a 2 billion dollar new headquarters in Manhattan – Big exception with the new building?? Goldman once bragged about their placement in the banking world and after massive negative reports of fraud, the new building does not even have a name on the front???? Only #2600 street address with a plain clothes guard to turn people back from entering w/o permission….???????

    G&S has forever owned part of the Fed Res — has forever been commiting fraud — owned basically by the Rothschild Dynasty and their other 9 cartel partners………..

    I hope that America will one day awaken and run these moneychangers back to europe or put them in jail like one of their buddies — Bernie Madoff….

  2. Ron Moss says:

    After homeschooling my kids very sucessfully and saving my stste several thousand dollars,,accordingly, I personally, resent Goldman Sachs Mafia treatment of our stupid Federal government/

  3. lvent says:

    The world is really waking up to what the TBTF and all of their evil minions and cohorts did… They were allowed to blow up the world’s economy and steal anything they wanted to cover up for all of their fraudulent and illegal activity…. These same criminals are to this day being allowed to financially terrorize the world….

  4. Ron Moss says:

    To better limit my objectives to qualify George Soros for Obamas food stamps I will agree to this notice and any small stste banks especially North Dakotas prospering example of what a local bank can do.

  5. housemanrob says:

    “Helter Skelter” is coming down!

    • leapfrog says:

      The vampire squid MUST die!

      • lvent says:

        LOL….leapfrog….I was watching Jim Kramer last night. He annoys me but has anyone ever noticed the nwo symbolism on the set of his show???…He had two big screens with the symbol for SMOM….It was and MOM With a $ symbol in the middle of the O…..Then his street signs with WALL STREET at the top and MAINSTREET underneath it…..What a jerk….In case anyone doesn’t know this GOLDMAN SAKS is the BIGGEST SMOM/VATICAN/JESUIT BANKING PROXIES IN THE WORLD……….SMOM STANDS FOR SOVEREIGN MILITARY OF MALTA…..FANNIE LOANS ARE CALLED MOM LOANS..THE VATICAN DOES NOT OWN THE LOANS, THEIR PERPS AT THE IMF JUST HOLD THE WORTHLESS BONDS…………THAT THEIR PERPS, FANNIE AND FREDDIE CREATED…………….IT WAS ALL A HITLER PLAN BY THE NEW WORLD ORDER TO STEAL OUR HOMES AND OUR NATIONAL SOVEREIGNTY…ALL ROADS LEAD TO ROME…………………………………DIE BANKER DIE!!!!!!!!!!!!!!!!!

      • housemanrob says:

        It doesn’t get any lower than Jim Cramer! I think he has a problem being short………probably in both places!

      • lvent says:

        LOL, Rob…When you get to the truth you can usually pick out who they are…Though they are getting sneakier..I noticed the asian anchor on CNBC made a sneaky remark the other night that the new car biz is not doing well…I can tell you I know for a fact, that is a BIG LIE…..That is how they operate and sneaky little lies like that are what is really hurting the ecomony and driving down consumer confidence….There are some really sneaky little liars…..I broke Kramers secret code last night…he works for them…………

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