The $8.9 billion Members United Corporate Federal Credit Union didn't include any shockers in its July 2009 financial statements, released earlier today. Member credit unions had already been informed the Warrenville, Ill.-based corporate would record $81 million in U.S. Central member capital account depletions in July, so the reported $78 million net loss for the month was expected.

In fact, the most interesting information in the financial reports pertained to the continued deterioration of monoline insurers, which sold credit enhancements to several corporates to guarantee timely payments of interest and principal on structured investments.

In addition to FGIC and Syncora Guarantee, which have already been reported as impaired, insurer Ambac recently suffered severe ratings downgrades last month by S&P. Combined, FGIC and Syncora only represent 1.4% of Members United's invested assets; however, Ambac backs 4.1%, representing nearly $400 million.

"While Ambac continues to be in compliance with its regulatory capital requirements due to the approved release of a majority of its contingency reserves, the amount of cushion for potential additional future losses has fallen substantially," the corporate reported in its financial reports, available online. (www.membersunited.org)

The corporate also reported additional deterioration in the highest reported ratings of its investment portfolio, as the percentage of non-investment grade ratings increased, and the percentage of AAA-rated bonds decreased.