NCUA hits setback in Goldman Sachs lawsuit
The National Credit Union Administration hit a setback when a federal judge in Los Angeles tentatively dismissed several claims in a lawsuit filed by the the NCUA against Goldman Sachs.
NCUA is a federal agency that oversees credit unions across the country.
The judge dismissed with prejudice NCUA's claims concerning seven of the eight residential mortgage-backed securities certificates at issue in the lawsuit, which charged that the Goldman Sachs’ RMBS issues played a role in the collapse of several credit unions.
"Although Goldman would like the court to view many of these allegations not as systematic disregard of underwriting guidelines, but instead as blind adherence to underwriting guidelines involving loan products that, by their very nature, were risky products, that is not a conclusion that the court is prepared to reach on the basis of the NCUA's pleadings," said U.S. District Judge George Wu.
Source: Mortgage Orb