ALEXANDRIA, Va. – NCUA filed suit today in Federal District Court in Kansas against Morgan Stanley & Co., Inc. and other firms, alleging violations of federal and state securities laws in the sale of more than $566 million in mortgage-backed securities to U.S. Central and WesCorp.

Like other litigation NCUA is pursuing against Wall Street firms, this latest suit alleges the firms made misrepresentations in connection with the underwriting and subsequent sale of mortgage-backed securities to U.S. Central and WesCorp. Both corporate credit unions became insolvent and were subsequently placed into NCUA conservatorship and liquidated as a result of losses from these faulty securities. These failures subsequently caused significant losses to the credit union system.

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