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National Credit Union files $491m lawsuit against Goldman Sachs

US regulator, National Credit Union Administration (NCUA) has filed a $491m lawsuit against Goldman Sachs for allegedly misleading two credit unions, US Central and Western Corporate federal, over purchase of risky mortgage securities.

The lawsuit alleged that Goldman had made "numerous material misrepresentations" in the securities offering documents that led the corporate credit unions to purchase of $1.18bn mortgage-backed securities, which later collapsed.

The credit union regulator said the lawsuit was part of its effort to recover losses on a $50bn portfolio of assets inherited from five failing wholesale credit unions that were seized post financial crisis.

The latest suit is the fourth filed by NCUA since mid-June to recover nearly $2bn. The regulator had previously sued JPMorgan Chase and Royal Bank of Scotland seeking more than $800m in damages.

The NCUA said it expects to file five to 10 lawsuits to recover investment losses that led to the failure of five large wholesale credit unions.

Goldman Sachs was sued by the Securities and Exchange Commission in 2009 for allegedly misleading investors over a mortgage-related security, which was settled in a $550m agreement.