Regulator Sues Goldman Sachs Over Risky Mortgages
By ALEX VEIGA AP Business Writer
LOS ANGELES (AP) _ The U.S. regulator of credit unions is suing Goldman Sachs & Co. for more than $491 million in damages over losses incurred by five failed wholesale credit unions that bought mortgage-backed securities from the investment bank.
The National Credit Union Administration filed the lawsuit on Tuesday in U.S. District Court in Los Angeles.
The federal regulatory agency claims Goldman Sachs misrepresented how risky the mortgage-backed securities it sold were.
The agency says that when the value of the securities plunged, that led the credit unions to fail.
Regulators have asserted similar claims in lawsuits against JPMorgan Chase & Co. and Royal Bank of Scotland PLC.
The NCUA says it may sue five to 10 other banks in coming weeks.
Goldman Sachs did not immediately return a call seeking comment.
Credit unions are non-profit financial institutions that are owned and operated entirely by their members. They provide financial services for their members, including savings and lending.
Associated Press text, photo and/or graphic material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. Neither these AP Materials nor any portion thereof may be stored in a computer except for personal and non-commercial use. The AP will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing.
Latest Stories
- Cook County Assessor’s Office Hosts Inaugural Neighborhood Housing Forum
- Celebrity Chef Carla Hall and The Fresh Market Team Up to Support Alzheimer’s Association During Month of June
- ONYX MEDICAL WELLNESS CELEBRATES GRAND OPENING & RIBBON CUTTING IN CHICAGO’S SOUTH SHORE DURING PRIDE MONTH
- 5th Annual Cook County Juneteenth Illinois Celebration to Be Held June 14th
- “NO MORE CUTS TO KIDS’ FUTURES”
Latest Podcast
STARR Community Services International, Inc.
