Judge To NCUA On RMBS Lawsuit: Where’s The Beef?

10872_court Judge To NCUA On RMBS Lawsuit: Where's The Beef? A federal judge has demanded that the National Credit Union Administration (NCUA) show cause why its lawsuit against Wells Fargo Securities LLC should not be thrown out for lack of prosecution.

CUNA News reports that U.S. District Judge Julie A. Robinson of the U.S. District Court for the District of Kansas said the NCUA has not produced any filings or court docket entries since the initial filing of its case on Nov. 28, 2011. The NCUA is suing Wells Fargo Securities LLC over the quality of residential mortgage-backed securities (RMBS) that were sold to corporate credit unions by Wachovia Capital Markets LLC, which was later acquired by Wells Fargo. Wachovia's representatives sold approximately $100 billion in RMBS to U.S. Central Federal Credit Union and Western Corporate Federal Credit Union, which the NCUA later placed into conservatorship on March 20, 2009.

Judge Robinson has given the NCUA a Feb. 26 deadline to show good cause in writing to the court, or else the lawsuit will be dismissed.


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