Former officers and directors of WesCorp Federal Credit Union told a federal court yesterday that National Credit Union Administration's (NCUA) growing legal battle with Wall Street banks over securities they sold to the failed corporate illustrates they could not have known the securities were faulty when they made the decision to buy them, thereby nullifying NCUA’s multi-billion dollar negligence suit against them.

The WesCorp figures told the court that NCUA’s latest suit claiming RBS Securities mislead WesCorp into purchasing 'AAA'-rated RMBS “are admissions that undercut and render implausible the NCUA’s allegations in this case in that the Director Defendants acted “clearly unreasonably” under the circumstances known to them at the time.”

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