LOS ANGELES – A federal judge issued a final order yesterday dismissing negligence charges against directors of WesCorp FCU but ruled that top executives of the one-time $34 billion corporate credit union must still face charges in a civil suit brought by NCUA claiming that their recklessness caused the huge corporate to fail.

The order by Judge George Wu gives NCUA some measure of victory but is fraught with potential for embarrassment as a public hearing on the causes of the WesCorp failure is bound to raise questions of what NCUA knew and when–especially since the federal regulator had an on-site examiner at both WesCorp and at U.S. Central FCU five days a week while two corporate giants slid into oblivion.

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