WesCorp's Investments Performing Worse Than Projected
Western Corporate FCU's investment portfolio is performing worse than previously estimated by NCUA and Clayton Holdings.
New OTTIs for the month of March reflect the fact that loss projections have increased at the seized corporate, said NCUA Director of Congressional and Public Affairs John McKechnie.
"This stems from deterioration in actual loan performance, as well as projected deterioration in future conditions," he said about WesCorp's first quarter 2010 financial report, which reported $49 million in new OTTIs.
News of the deteriorating investments follow December 2009 OTTIs at WesCorp and other corporates due to Wisconsin's insurance regulator limiting monoline insurer Ambac's payments to 25 cents on the dollar. Earlier projections "had showed greater payment capacity by Ambac," McKechnie said.
The NCUA Board has not yet made any determinations about the size of future assessments, but is planning a review of NCUSIF levels sometime this fall, he said.