Clayton Fixed Income Services is examining the books of seized corporates U.S. Central FCU and Western Corporate FCU, the NCUA said today in its weekly corporate credit union update.
The result of those reviews, along with the agency's own analysis, will "assist in finalizing the level of Other-Than-Temporary-Impairment (OTTI) charges both corporate credit unions will record."
The Clayton review is the final step in finalizing the corporates' 2008 audited financial statements, which credit unions have been eagerly anticipating so they can justify the impairments they did or didn't take on their own books.
The AICPA recommended credit unions use U.S. Central's audited financials when determining their own accounting treatments. The NCUA hasn't said when it expects to release U.S. Central's 2008 audited financials, but said it still intends to release March 31, 2009 financial statements for both corporates next month.
The Shelton, Conn.-based Clayton Holdings is an experienced corporate credit union due diligence vendor. Last fall, both the $4 billion Corporate One Federal Credit Union and the $1.75 billion First Carolina Corporate Credit Union announced they had hired Clayton to review securities portfolios.