A federal judge issued a ruling this morning suggesting that the statute of limitations may have expired on National Credit Union Administration’s (NCUA) claims that Wall Street banks sold MBS they knew were faulty to corporate credit unions, potentially rendering NCUA suits filed earlier this year moot.

In a preliminary ruling filed in U.S. District Court, Judge George Wu said NCUA claims in a suit brought against RBS Securities for the sale of $1.2 billion of MBS to WesCorp Federal Credit Union are “insufficient thus far to demonstrate compliance with at least the applicable federal statute of limitations.”

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