A federal judge indicated yesterday he plans to reject Goldman Sachs' motion to dismiss National Credit Union Administration 's (NCUA) suit and continue the case challenging the Wall Street bank over $1.1 billion of faulty RMBS it sold to U.S. Central Federal Credit Union and WesCorp Federal Credit Union, the two biggest credit union failures ever.

Judge George Wu told lawyers for NCUA and the Wall Street bank during a hearing yesterday that he expects to reject Goldman’s argument that NCUA’s suit, filed in August 2011, was too late to satisfy the relevant statute of limitations for securities sold to the two corporate giants as early as 2006. He plans to issue a written ruling in the next few weeks, according to one of the attorneys at the hearing.

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