The national management of the National Credit Union Administration (NCUA) of the USA filed two civil suits to the district-court of Kansas City against big banks of the country J.P. Morgan Chase & Co and Royal Bank of Scotland Group PLC (RBS), - as The Wall Street Journal informs. RBS and J.P. Morgan Chase did not give any comments to this situation.
The financial regulator supposes that credit organizations convinced 5 American credit unions to buy security mortgage papers for more than 3 billion dollars. During the mortgage crisis which lately rose into economic one the given documents fell substantially that reflected in the results of credit unions activity.
NCUA considers that J.P. Morgan Chase and RBS must recoup the losses of credit unions. From the first bank the regulator requires 278 million dollars, from the second one – 565 million. In addition to that, the newspaper resources report that NCUA can submit similar additional suits against 8 more credit organizations of the country. In the middle of 2010 the Securities and Exchange Commission started the investigation of several large banks activity, among them were JPMorgan Chase, Citigroup, Morgan Stanley and Goldman Sachs Group Inc. SEC interested in the organization deals with mortgage securities carried out before the downturn.