A federal judge ruled yesterday that an agreement between National Credit Union Administration (NCUA) and Goldman Sachs in August 2010 allowed the credit union regulator to extend the statute of limitations on securities claims against the Wall Street bank and so refused to dismiss NCUA’s $1.1 billion claims over the failures of U.S. Central Federal Credit Union and WesCorp Federal Credit Union.

U.S. Judge George Wu rejected the argument made by Goldman that NCUA was too late in filing its suit in August 2011 to satisfy the relevant statute of limitations for securities sold to the two corporate giants as far back as 2006. Wu ruled that Goldman agreed to extend the statute of limitations on the NCUA claims as part of an August 31, 2010 “tolling” agreement. Such agreemenets are often entered into to give the sides more time to negotiate before one party files suit.

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