DENVER – A lawyer for NCUA told a federal appeals panel this morning that billions of dollars in claims related to the corporate credit union bailout rely on whether the courts allow it to extend the nominal statute of limitations on securities claims until after it and the banking regulators take over failed institutions.

Washington attorney David Frederick told the Court of Appeals for the Tenth Circuit that the 1989 S&L Bailout Law, known as FIRREA, provides the federal government with extraordinary powers in its efforts to recover for the resolution of failed financial institutions and thereby overrides the nominal three-year statute of limitations under federal securities laws.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.