Members United Corporate FCU management estimates the $10billion corporate will record a $511 million loss against itscapital base over the next couple of months, wiping out allretained earnings and paid-in capital. Member capital shares willalso take a $129 million hit.
The losses include a $234 million total capital loss from U.S.Central PIC and a $266 million OTTI that represents future creditlosses on Member United's residential mortgage backedsecurities.
"Total capital of $866 million can absorb this base case lossestimate, and the remaining $355 million will either serve as thefoundation to rebuild upon or will absorb future losses if themarkets continue to deteriorate," Members United told members in anemail this morning that preceded today's financial update webinar.Slides from that webinar will be posted to Member United's websitelater today. (www.membersunited.org)
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