New losses at the $9.5 billion Members United Corporate Federal Credit Union will leave the struggling corporate hanging by its fingernails, requiring it to deplete "substantially all" of its remaining capital.
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%.
Western Corporate FCU's investments are performing worse than previously estimated by the NCUA and Clayton Holdings, according to new OTTIs recorded for March.
Federal accounting rules, deteriorating securities and an increasing corporate bailout price tag are hurdles the NCUA will have to overcome in its quest to rid corporates of toxic investments.
Monoline insurer Ambac's forced restructuring could cost corporate credit unions as much as $400 million in new OTTIs.
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.
Western Corporate FCU's investment portfolio is performing worse than previously estimated by NCUA and Clayton Holdings.
Later today, the $22 billion Western Corporate FCU will announce $25.4 in new OTTIs due to monoline insurer Ambac's declining ability to meet bond insurance claims, NCUA spokesman John McKechnie told the Credit Union Times.
Monoline insurer Ambac's weakened condition resulted in an additional $274 million worth of losses for U.S. Central FCU
A nearly $500 million fourth-quarter other-than-temporary impairment blew through what was left of the $35 billion U.S