Six weeks of conservatorship under new management and the adoption of new FASB rules has caused a significant reshuffle of numbers in U.S. Central's financials, including a puzzling 23% member capital shares impairment, far less than the 63% impairment announced by the NCUA May 1.
Should retail corporates be looking for $500 million worth of rebate checks in the mail?
Unfortunately, no. While the percentage of MCS exhaustion did decrease, it was the result of discounting projected credit losses, or cash flows, to the present value. The regulator still stands by its gross projected losses of $2.3 billion, said NCUA Director of Public and Congressional Affairs John McKechnie.
"These fluctuations are expected in any situation when the values of assets are moving targets," he said.
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