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News Now

CU System
CUNA Mutual Seeks S&P Documents In RBS Securities Lawsuit
NEW YORK (3/11/13)--CUNA Mutual Group's CUMIS Insurance Thursday asked a federal court in New York to enforce the insurance company's subpoena for documents from Standard & Poor's about $72 million in residential mortgage-backed securities (RMBS) CUMIS bought from RBS Securities before the country's financial crisis hit.

Madison, Wis.-based CUNA Mutual confirmed to News Now Friday that the motion was filed Thursday in the U.S. District Court for the Eastern District of New York.

New York-based S&P is also being sued by Department of Justice over S&P's role in reviewing and inflating the value of  the RMBS pools, which held subprime mortgage loans and collapsed. They included those held by corporate credit unions and CUNA Mutual.

It is the third motion CUNA Mutual has filed seeking documents related to its suit against RBS Securities. That suit involves 15 RMBS sold to CUNA Mutual's MEMBERS Life Insurance Co. and CUMIS Insurance Society between 2004 and 2007.

In November it sought a federal court in Seattle's help in obtain documents from Bellevue, Wash.-based Watterson Prime LLC, which provided due diligence on the securities.  It also filed an enforce-subpoena motion against  Fitch, but that motion was dismissed after Fitch and CUNA Mutual settled (News Now Nov. 29). 

CUNA Mutual filed the lawsuit seeking rescission of the sales against RBS on Jan. 17 in a U.S. District Court in the Western District of Wisconsin (Madison).  It maintains RBS misrepresented the products sold.


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