In the first two of what promises to be several legal actions seeking compensation for the corporate credit union crisis, the National Credit Union Administration (NCUA) sued two of the biggest Wall Street banks last week seeking to recover losses from the now-toxic mortgage-backed securities they sold to four of the five failed corporates.

NCUA charges that JPMorgan Securities and RBS Securities, a unit of Royal Bank of Scotland, sold almost $1-billion of MBS to the four corporates — U.S. Central Federal Credit Union, WesCorp Federal Credit Union, Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union — that were stuffed with subprime loans that were passed off as triple A-rated. The suits were filed in U.S. District in Kansas City, which has jurisdiction over Lenexa, Kan.-based U.S. Central, the one-time $52-billion corporate.

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