Members United MCS Now 97% Impaired
The $9.5 billion Members United Corporate Federal Credit Union released its April 2010 and year-end 2009 audit today, reporting additional OTTIs that will impair member capital shares by 97%.
December 2009 OTTIs numbered $116.9 million, and Members United recorded an additional $21.1 million OTTI in April, resulting in a retained deficit of $130 million. The Warrenton, Ill.-based corporate will eliminate the deficit using capital effective May 28, including some $11 million worth of MCS on-notice for withdrawal.
The December losses include an OTTI of $87.1 million due to monoline insurer Ambac's forced restructure. Members United is placing a 25% repayment reliance upon the struggling Wisconsin firm.
In total, Members United has recorded $562 million in OTTIs since November 2008.The next investment review is scheduled to be completed as of June 30, with results scheduled to be released in July. Any additional OTTIs would be recorded in August financial statements.