The $8 billion Members United Corporate Federal Credit Unionreported an $81.9 million OTTI in its newly released June financialreports, resulting in a $79.3 million net loss for the month.
The failure of two monoline insurers, FGIC and SyncoraGuarantee, contributed to the losses. Members United also warnedthat Ambac and MBIA, which provide credit enhancements to a greaterpercentage of its investment portfolio, "have experienced ratingsdowngrades and their credit spreads are trending unfavorably."
The Warrenville, Ill.-based corporate has not yet applied thelosses to member capital; Members United said it will wait until itreceives financial statements from U.S. Central Federal CreditUnion, expected today.
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