Last week, the NCUA added to its list of targets by suing Goldman Sachs for $491 million for losses corporates endured due to mortgage-backed securities. This is the fourth suit filed by the NCUA against securities firms, seeking a total of $2 billion in damages.
The NCUA will have to get into a very long line of parties seeking to be compensated for flailing mortgage-backed securities. Freddie Mac, Fannie Mae, AIG, Allstate and John Hancock are all likely to follow through on threats to sue Goldman.
Will the NCUA be successful? It's hard to imagine that there will be any fast big-dollar settlements with these suits. They will be multiyear, expensive suits.
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