Last checked at 
(Adds background and byline)
By Dena Aubin
NEW YORK, Oct 19 (Reuters) - British bank Barclays Plc and U.S. bank Wachovia, now part of Wells Fargo & Co, will pay a combined $378 million to resolve claims overtoxic mortgage-backed securities sold to now-failed creditunions, a U.S. credit union regulator said on Monday.
Barclays will pay $325 million and Wachovia will pay $53million, the National Credit Union Administration said. Thecompanies are settling without admitting wrongdoing, the NCUAsaid.
Barclays said on Monday it will include a provision for thesettlement in its third-quarter results.
"We are pleased that this matter is resolved," Wells Fargospokeswoman Elise Wilkinson said.
The NCUA said the settlements will bring to $2.2 billion itstotal recoveries from various banks in litigation over faultymortgage bonds sold to corporate credit unions. The agency,which regulates and supervises federal credit unions, has suednumerous banks to recover losses caused by the collapse ofcredit unions during the financial crisis.
The agency had sued Barclays' U.S. unit Barclays Capital in2012, accusing it of making false statements in offeringdocuments for mortgage-backed securities sold to U.S. creditunions that later failed.
Mortgages backing the securities were much riskier than theoffering documents stated, with a "material percentage" all butcertain to become delinquent or default, the lawsuit said.
Wachovia was accused of similar practices in a 2011 lawsuitby the NCUA.
The lawsuits sought damages for violations of various stateand federal securities laws.
Banks that have already paid big settlements includeJPMorgan Chase & Co, Citigroup and Bank of AmericaCorp. The NCUA said it continues to pursue lawsuitsagainst others, including Goldman Sachs Group Inc, CreditSuisse Group AG and Morgan Stanley.
The agency said on Monday it also has litigation pendingagainst securities firms over alleged manipulation of interestrates and for failing to perform their duties as trustees forresidential mortgage-backed trusts. (Reporting By Dena Aubin Additional reporting by Steve Slaterin London and Nate Raymond in New York; Editing by SteveOrlofsky and Chris Reese)
