The Department of Justice announced Tuesday a $1.417 billionsettlement for the NCUA with JP Morgan over failed corporate credit union investments.

The settlement resolves lawsuits the agency filed as liquidatingagent against JPMorgan Chase, Bear Stearns and Washington Mutualfor losses incurred by corporate credit unions as a result of thepurchases of the faulty residential-backed mortgage securities.

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“Today’s announcement by the Justice Department is extraordinaryand will greatly benefit credit unions that have been paying forthe losses caused by the financial institutions covered by thissettlement,” NCUA Board Chairman Debbie Matz said in a release.

“This resolution, combined with the $335 million alreadyrecovered, will enable NCUA to greatly reduce the assessments thatall credit unions have to pay,” Matz said.

“All this really comes down to holding responsible partiesaccountable,” she said. “In agreeing to this settlement, theworld’s largest bank has taken a measure of responsibility foractions that caused severe damage to the credit union system. NCUAremains committed to fulfilling our statutory responsibilities toprotect the credit union system by pursuing further recoveriesagainst other Wall Street investment firms on behalf of creditunions and their members.”

The NCUA portion is part of an overall $13 billion settlementwith JP Morgan.

Of the record-breaking $13 billion resolution, $9 billion willbe paid to settle federal and state civil claims by variousentities related to RMBS.

The NCUA sued JP Morgan Securities in June 2011 torecuperate more than $800 million in losses to corporate creditunions.

“NCUA has a responsibility to do everything in our power to seekmaximum recoveries from those involved in the issuing, underwritingand sale of the faulty securities that resulted in the failures offive of the largest wholesale credit unions,” Matz said in June2011.

“Those who caused the problems in the wholesale credit unionsshould pay for the losses now being paid by retail credit unions,”the board chair said.

The settlement was first reported last month but the agency would not confirm itthen.