LENEXA, Kan. - Late yesterday, U.S. Central cleared up some of the "who knew what when" mystery surrounding the aggregate corporate's $1 billion bailout and resulting insurance premium levy on credit unions.
Spokesman Austin Braithwait confirmed U.S. Central told corporates in early January it estimated taking a 2008 year-end OTTI between $100 and $150 million. U.S. Central had presented members with a report compiled from analysis by three independent valuation firms in October that reported that amount. Braithwait said U.S. Central contacted each firm individually
to determine if there had been any changes to their evaluation models.
"Based on those conversations with the three firms, U.S. Central did not expect significant changes and subsequently relayed that same $100-$150 million estimate to members," he said.
Not long after, however, the three, along with U.S. Central management, determined that $2.3 billion worth of private label mortgage backed securities must be written down to slightly less than 50 cents on the dollar, resulting in the $1.2 billion OTTI.
Braithwait confirmed that in addition to Dickens, who was executive vice president of asset liability management, Chief Investment Officer Connie Loveless has also left U.S. Central.