A key lawmaker has called on National Credit Union Administration (NCUA) for information regarding lucrative fee arrangements NCUA has struck with several law firms representing the agency in multi-billion dollar civil suits against Wall Street banks over their sale of MBS to the five failed corporate credit unions.

Rep. Darrel Issa, chairman of the House Oversight Committee, has asked NCUA’s Inspector General to investigate the use of so-called contingency fees in the Wall Street suits, in which NCUA is requesting billions of dollars in damages in compensation for the failed corporates. With contingency fees lawyers payments are contingent on the amount of money they recover, rather than on an hourly rate.

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