Laughable: Goldman Sachs Pays Out Another $500 Million For F*cking Our Economy



Goldman Sachs claims $200 Billion in Liquid Assets and claims investment management funds of $1.25 Trillion. In 2007 assets were around 860 Billion 2007 Annual Report Here2015 Annual Report Here (Worth $86.5 Billion). Goldman Sachs acquired Half A Trillion Dollars in Assets through the Financial Crisis of 2008.

NCUA Legal Recoveries Will Top $3 Billion? What a Joke.

​”Agency” to Receive $575 Million from Goldman Sachs Settlement.

ALEXANDRIA, Va. (April 11, 2016) – With the completion of a settlement with Goldman Sachs, the National Credit Union Administration will have recovered more than $3 billion from Wall Street firms that sold faulty mortgage-backed securities to five corporate credit unions.

NCUA joined the U.S. Department of Justice and other governmental plaintiffs in a $5 billion settlement that includes $575 million to settle NCUA’s claims against the investment firm. The settlement resolves two lawsuits filed by NCUA as liquidating agent for three corporate credit unions—U.S. Central, WesCorp and Southwest—against Goldman Sachs for losses incurred as a result of the purchases of the faulty securities by the corporate credit unions, which later failed.

X U.S. Central ($27 Billion) received $1 Billion in “Stimulation” funds in 2009, subsequently shut down in 2012. 

X WesCorp ($23 Billion) absorbed by Catalyst Federal Credit Union (Merger).

X Georgia Federal Credit Union ($2.5 Billion) – Not named in the settlement, was acquired with Wescorp by Catalyst. Catalyst owns Cusource as well.  Cusource absorbed these assets.

FirstCorp ($1 Billion) – Not named in the settlement, was also acquired by Catalyst.

X Southwest (Changed It’s Name…Catalyst Federal Credit Union).

X Cusource was acquired by Member Driven Technologies, worth $18.9 Billion. 

ƒ Catalyst Corporate Federal Credit Union (2.7 Billion). 2015 Financial Statement

And so $62.5 Billion turned into $2.7 Billion

The rest of the report from The NCUA:

“Credit unions are benefiting from an aggressive litigation strategy NCUA continues to follow in order to hold responsible parties accountable,” NCUA Board Chairman Debbie Matz said. “The recovery from the settlement announced today by the Justice Department, combined with the $2.5 billion already recovered, will enable NCUA to greatly reduce the assessments all credit unions have to pay.”

Net proceeds from these recoveries are used to pay claims against five failed corporate credit unions, including those of the Temporary Corporate Credit Union Stabilization Fund. Recoveries by the Stabilization Fund reduce the likelihood of assessments charged to federally insured credit unions to pay for the losses caused by corporate credit union failures.

“NCUA remains committed to fulfilling its statutory responsibilities to protect the credit union system by pursuing further recoveries against other Wall Street investment firms on behalf of credit unions and their members,” Matz said.

NCUA was the first federal financial institutions regulator to recover losses from investments in faulty securities on behalf of failed financial institutions.

Seven years ago, the credit union system faced a crisis when the faulty mortgage-backed securities purchased by five corporate credit unions plunged in value. These losses led to the failure of those corporate credit unions and left the entire credit union system with billions of dollars in losses. When purchased by the failed corporate credit unions, the vast majority of the securities issued by Goldman Sachs had triple-A ratings, but they have since been significantly downgraded.

“NCUA’s Board extends our thanks and appreciation to the attorneys here at the agency and at the Department of Justice who worked closely together to resolve this litigation,” Matz said.

NCUA still has litigation pending against several other financial institutions, including Credit Suisse, RBS Securities, and UBS Securities, alleging they sold faulty mortgage-backed securities to four corporate credit unions: WesCorp, U.S. Central, Southwest and Members United. The agency recently announced it had accepted offers of judgment from Credit Suisse and UBS with respect to litigation filed in New York on behalf of Southwest and Members United, although that litigation has not yet been dismissed. Other claims against those banks remain in Kansas and California. NCUA also has pending litigation against various RMBS trustees and LIBOR banks related to corporate credit union losses.

 


NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 102 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At MyCreditUnion.gov and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.

–NCUA–

– See more at: https://www.ncua.gov/newsroom/Pages/news-2016-april-goldman-sachs-settlement.aspx#sthash.0mIC1Kxg.dpuf


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Christopher Kemmett

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