Barclays Says Credit Union Regulator Filed Suit Too Late
Barclays Plc (BARC)’s investment-banking unit asked a court to dismiss a lawsuit claiming it made misleading statements about mortgage-backed securities it sold to two credit unions that later failed.
The National Credit Union Administration, a U.S. regulator, filed its claims too late, Barclays argued in papers filed yesterday in federal court in Kansas City, Kansas.
The NCUA accused the unit, formerly known as Barclays Capital Inc., of breaching state and federal law when it allegedly made misrepresentations in the course of selling securities valued at more than $555 million to the U.S. Federal Credit Union and to the Western Corporate Federal Credit Union between February 2006 and June 2007.
Both credit unions were placed under the agency’s conservatorship in March 2009, then into liquidation in 2010. The NCUA sued in September.
“Years before the statute of limitations expired, the NCUA warned the credit unions of the risks that lay at the heart of the complaint’s allegations,” Barclays said.
Federal law required the NCUA to file its claims within one year after the alleged violations were, or could have been, discovered, according to the London-based bank. Barclays also said the offering materials accurately disclosed the risks.
The NCUA filed a similar lawsuit in the same court in October against a Credit Suisse Group AG (CSGN) unit.
The case is National Credit Union Administration v. Barclays Capital, 12-cv-2631, U.S. District Court, District of Kansas (Kansas City).
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