Western Corporate FCU members got their first peek at NCUA-led financials in an email this morning. It provided them with official confirmation of what many had already assumed was true: WesCorp's paid-in capital and membership capital accounts have been depleted, and must be written off.
"By application of the terms of account, your MCAs and PIC have been depleted to cover losses that exceed retained earnings, as mandated by Part 704.2," the email stated. "As a result, Member Capital Accounts and Paid-in Capital accounts have been reduced to zero balances as of April 30, 2009 and will be reflected as such on the WAVE view of the Member Center and on your April statement."
WesCorp recorded an other-than-temporary impairment as of March 31, 2009 of $5.7 billion, the result of a $5.6 billion credit loss in its securities portfolio. The financial reports are available on WesCorp's website (www.wescorp.org).
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Members will have the chance to discuss the numbers during a May 7th conference call which will include both WesCorp and NCUA officials.
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