Eight lawsuits by the National Credit Union Administration (NCUA) Board aimed at recouping losses on mortgage-backed securities were halted by a federal judge pending an appeals court ruling, Bloomberg News reported yesterday. U.S. District Judge John Lungstrum yesterday put the litigation on hold until the U.S. Court of Appeals in Denver rules on a challenge by RBS Securities Inc. to another judge’s decision last year denying its request to dismiss a lawsuit by the board. NCUA, an Alexandria, Virginia-based federal agency responsible for recovering losses to minimize costs to its industry-funded stabilization fund, sued units of Royal Bank of Scotland Plc, JPMorgan Chase & Co., Barclays Plc and other banks, claiming they used misleading documents to sell the securities to credit unions that later failed.
