Members United Investment Losses Still Under Review
Members United Corporate FCU posted its March 2010 financial reports online today (www.membersunited.org/FinancialCenter.html); but, like the $8.5 billion institution's year-end figures, they do not include investment losses.
McGladrey & Pullen is still reviewing Members United Corp's 2009 year-end financial statements. According to today's release, the new target for 2009 audited numbers is the end of May and is expected to produce new OTTI losses.
First quarter 2010 reviews are also still underway, said Vice President of Marketing Victor Vrigian.
"However, Members United believes at this time that existing capital would be sufficient to absorb losses that arise from the completion of that review," he said. The corporate said its $151 million in remaining capital will cover December's losses, as well.
Members United will be affected by regulatory action against monoline insurer Ambac, which ceased paying claims as of March 25, and will only pay 25% of claims going forward. Members United-owned bonds wrapped by Ambac had a book value of $300 million as of March 31.