The National Credit Union Administration (NCUA) has filed a lawsuit against the country’s eight largest banks for allegedly selling faulty mortgages which led to the demise of two credit unions. The banks named in the lawsuit include:
- JP Morgan Chase
- Morgan Stanley
- Credit Suisse
- Royal Bank of Scotland
- Wells Fargo
- Ally Financial
Southwest and Members United corporate credit unions were the two unions which failed not long after purchasing the mortgages. JP Morgan is named in the suit due to purchasing Bear Stearns, which sold some of the mortgages, in 2008.
Of the banks named in the suit, Morgan Stanley, according to the NCUA, was the largest seller of the mortgages. The bank sold more than $416 million worth of mortgage-backed securities. Among the other banks, a total of $1.9 billion of securities were sold. The banks allegedly made misrepresentations regarding underwriting and the sales of the securities.
Entrust your savings with a financial industry known for putting its clients’ interests first. The Valley Federal Credit Union of Brownsville can be reached at 956.546.3108.