LENEXA, Kan. — U.S. Central doesn't make a habit of changing year-end numbers six months later … or to the tune of $51 million in the hole … but this year's typically simple closing process was an exception, said Kathy Brick, senior vice president and chief financial officer.
"We had to land on something by January 22 for year end 2007, even in this very disrupted market, so we did that with the full understanding that there would be an audit and numbers would likely change," Brick said.
As U.S. Central finance pros sifted through 2007 numbers and updated securities ratings earlier this year, the corporate "became aware of things that could alter our previously published numbers," Brick continued. The corporate cornerstone proactively communicated the potential losses to member corporates through Webinars and conference calls, who shouldn't have been caught by surprise upon hearing yesterday's revised figures, she said.
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David Dickens, executive vice president of asset/liability management, said mortgage-backed securities make up about half of U.S. Central's $40 billion investment portfolio.
"Based on the work we've done internally, as well as that done by the outside third party, we don't expect to take any additional losses, other than temporary impairments," Dickens said of his MBS portfolio.
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