WICHITA, Kan.-The FDIC told a federal court here last week it should allow NCUA to extend the nominal statute of limitations on securities claims against several Wall Street banks that sold mortgage-backed securities to five failed corporate credit unions because the 1989 S&L bailout law allows for the extension.

"One of the tools Congress included in FIRREA is a provision that extends a statute of limitations that would otherwise have been applicable to causes of action of the failed institution," the FDIC asserted in an amicus brief filed with the U.S. District Court for the District of Kansas, where U.S. Central FCU, the one-time $52-billion central bank for credit unions was based.

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