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The 2nd Circuit Court of Appeals, in a decision last week that affirms a lower court's, said the NCUA lacks standing to sue U.S. Bank over failure to satisfy their trustee duties related to residential mortgage-backed securities that led to the failure of five corporate credit unions.

The NCUA sued U.S. Bank in December 2014 for failing to follow through on its legal duties as trustees for 99 RMBS trusts, in turn harming corporate credit unions.

In previous suits, NCUA charged that Barclays Capital, Credit Suisse, Goldman Sachs, J.P. Morgan Securities, RBS Securities, UBS Securities, Wachovia, Washington Mutual and Bear Stearns violated federal and state securities laws in their sale of RMBS to five corporate credit unions. The recoveries have reached more than $5 billion.

The NCUA's recoveries in these suits offset the total costs to credit unions of the corporate stabilization program. As a result of the merging of the stabilization fund into the National Credit Union Share Insurance Fund, eligible credit unions received $735.7 million in distributions last month. NAFCU continues to fight for credit unions to realize the fullest distribution possible.

The NCUA still has pending litigation against various RMBS trustees and LIBOR banks related to corporate credit union losses.