While some observers have suggested that Bank of America's big settlement with the federal government, BofA to Pay $16.65 Billion in Historic Mortgage Settlement, marks an end to the raft of lawsuits over the mortgage crisis which spawned the financial crisis of 2008-2009, a U.S. circuit court ruling suggests otherwise.
On August 19, the National Credit Union Administration (NCUA) scored a major victory in the 10th U.S. Circuit Court of Appeals in Denver in it its quest to recover losses from big banks that sold mortgage-backed securities to failed corporate credit unions.
The ruling, which was prompted by a directive from the U.S. Supreme Court in June, sided with the NCUA's claim that the three-year time frame defendants have to file loss claims began when it seized three failed corporates, not when the corporates purchased the securities.
