Lawyers for National Credit Union Administration (NCUA) asked a federal court Tuesday to bar potentially embarrassing testimony by NCUA board members Debbie Matz and Gigi Hyland and former chief corporate examiner Kent Buckham in the civil trial over the 2009 collapse of WesCorp FCU, which is projected to cost credit unions $7 billion to resolve.

In a request for a protective order filed with the U.S. District Court for the Central District of California NCUA claims the depositions of the three senior NCUA officials should be barred on the grounds that Robert Siravo, the former CEO of WesCorp, “has not shown that these high-ranking NCUA officials have direct personal factual information pertaining to material issues in this action and that such information is not available through any other source.”But lawyers for Siravo, who is being sued for negligence in the failure of the one-time $34 billion corporate, claim that senior NCUA officials, particularly Matz and Hyland, downplayed financial troubles at WesCorp and the other corporate numerous times and placed the causes on the market and other extraneous reasons. “It is no surprise that the NCUA wants to prevent this deposition; the statements are critical party admissions that show that as late as 2010 (after NCUA conserved WesCorp) the agency was singing the praises of the corporate credit unions’ handling of the economic crisis and decisions to invest in (residential mortgage backed securities),” said Siravo’s lawyers in defending their efforts for a public accounting of the agency’s actions in the corporate debacle.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.