The National Credit Union Administration (NCUA) has announced separate settlements with Deutsche Bank Securities and Citigroup regarding potential claims relating to the sale of residential mortgage-backed securities to five failed wholesale credit unions.
Deutsche Bank Securities agreed to pay NCUA $145 million to reduce the losses associated with the failed credit unions, while Citigroup has agreed to pay NCUA $20.5 million. NCUA will use the net proceeds from these settlements to reduce assessments being charged to credit unions to pay for the losses.
‘These settlements further our goal to minimize losses and thereby reduce the assessments that all credit unions will have to pay,’ says Debbie Matz, NCUA chairwoman. ‘NCUA will continue to fulfill our statutory responsibility to secure maximum recoveries for credit unions and ensure that consumers remain protected.’
As part of their settlements, neither Deutsche Bank nor Citigroup is admitting fault for their transactions.