Reversal In Wall St. Ruling Sought

NEW HAVEN, Conn.-NCUA last week joined a union in asking a federal appeals court to overturn a ruling dismissing the union's claims against several Wall Street banks regarding mortgage backed securities the banks sold to the union. The case of the New Jersey Carpenters' Health Fund is critical to NCUA, which has made similar claims against several of the same Wall Street banks. In its ruling against the Carpenters' Union last year, the U.S. District Court for the Southern District of New York struck down many of the same arguments made by NCUA in its suits, mostly that the originators of the loans and the banks that packaged the loans into MBS knew the mortgages would fail when they sold the securities to the corporates.

New CU Charter Nears Approval

RAPID CITY, S.D.-NCUA Chairman Debbie Matz said the agency is close to approving a charter for a CU to serve the Lakota Indians, also known as the Sioux, at their Pine Ridge Reservation in Kyle. Matz told attendees at the annual meeting of the CU Association of the Dakotas she supports the new CU, which would provide small business loans on the reservation and help individuals grow their personal assets. The Pine Ridge Lakota Reservation covers 70,000 square miles in the western third of South Dakota and is home to 40,000 Native Americans, but it does not have a single bank or credit union.

"It fills such a dire need on the reservation, where there is no other access to insured deposits and to lending that's not predatory," Matz said.e_SClB NCUA News Member Files Suit Against Alliant CU Over Its 'Courtesy Pay' Program SAN JOSE, Calif.-A member of Alliant CU, a Chicago-based credit union giant with major operations in California, last week filed suit against the CU regarding its alleged practices of paying off debit card transactions, the fifth big California CU to be targeted in an overdraft suit over the last week. The newest suit charges the $8-billion Alliant with fraud and unfair business practices regarding its "courtesy pay" program, which the member claims pays off the largest debit first, instead of those made in chronological order, so as to maximize its overdrafts. "Many times," said the suit, "the amount of the overdraft ($25) exceeds the amount of the underlying transaction." The suit is similar to class actions filed last week against Kern Schools FCU, SchoolsFirst FCU, Educational Employees CU and Star One CU, as well as America's First FCU, Legacy Community FCU and Alabama Telco CU in Alabama. All of the suits have been filed by attorneys affiliated with Jacoby & Meyers, a national tort law firm.

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