New OTTI charges announced today by the $31.5 billion U.S. Central Federal Credit Union means the seized corporate must increase its impairment to membership capital shares, which will trickle down to member corporates.
The second quarter $470.5 million net loss doesn't completely wipe out MCS, but it does leave only $452 million. That represents a 63% impairment from U.S. Central's unimpaired $1.2 billion MCS total, an increase from the 23% impairment the NCUA advised for the first quarter.
Ironically, 63% MCS impairment is what the NCUA originally reported in May before adjusting the estimate to conform to new FASB mark-to-market rules.
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