The NCUA has worked a settlement with Royal Bank of Scotland (RBS) Group for $129.6 million. This will settle the NCUA’s claims that RBS sold toxic mortgage-backed securities to Southwest Corporate FCU and Members United Corporate CU; both of which are now-failed corporate credit unions.
In 2013, the NCUA filed a lawsuit against RBS and eight other financial institutions for not following underwriting guidelines for the securities, which were rated triple-A at the time. The corporate credit unions bought them for a total of more than $300 million in 2006 and 2007.
The NCUA has now recovered nearly $2 billion from other banks as the result of similar litigation.
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