Seven lawsuits filed by the National Credit Union Administration Board will move forward against banks that sold residential mortgage-backed securities (RMBS) after a federal judicial panel refused to coordinate them with similar cases in Kansas.
The board, an independent government regulatory agency, brought the suits last year on behalf of four liquidated credit unions that had purchased the securities. They accuse the defendant banks, as underwriters and issuers, of misstating the risks of those offerings.
