The $7.4 billion Members United Corporate FCU found a way around accounting rules that prevent investors from recovering bond losses once they are written down as OTTI: sell it rather than hold it to maturity.
The $3.7 billion Corporate One FCU did not record any OTTIs against $35.5 million worth of securities wrapped by monoline insurer Ambac Assurance Corp., according to its March 2010 financials.
The $10 billion Southwest Corporate FCU joined Corporate One FCU in deciding not to take any additional OTTI related to the Wisconsin insurance regulator's March 25 action against monoline insurer Ambac Assurance Corp.
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.
The $3.7 billion Corporate One Federal Credit Union is placing full reliance for repayment on monoline insurer Ambac Assurance Corp, bucking the trend of other corporates who have recorded OTTIs on affected securities.
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.
The Wisconsin-based monoline insurer subsidiary of Ambac Financial Group has restructured its residential mortgage-backed securities guarantees into a separate,
Ambac Assurance Corporation announced it restructured its residential mortgage backed securities guarantees into a separate "segregated account" after the Wisconsin Insurance Commissioner successfully petitioned to take control of the fund.
After releasing November financial statements, in which many corporate credit unions wrote off 100% of their U.S. Central capital investments,