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Neither the $8.9 billion Members United Corporate Federal Credit Union nor the $20 billion Western Corporate Federal Credit Union revealed any shockers in their July financial reports. Members United recorded a $78 million net loss for the month. However, the Warrenville, Ill.-based corporate had already informed members it would record $81 million in U.S. Central Federal Credit Union capital impairments in July. WesCorp reported a $6.4 million net income for July. The San Dimas, Calif.-based corporate wrote off its entire U.S. Central capital investment months ago and will likely only record other-than-temporary impairments every three months, upon the quarterly review of its investment portfolio. The continued deterioration of monoline insurers, which sold credit enhancements to several corporates to guarantee timely payments of interest and principal on structured investments, was part of the Members United report. In addition to FGIC and Syncora guarantees, which have already been reported as impaired, insurer Ambac recently suffered severe ratings downgrades last month by Standard & Poor’s. Combined, FGIC and Syncora represent 1.4% of Members United’s invested assets, but 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 said in its financial reports, which are available online at www.membersunited.org. WesCorp’s $6 million plus net income in July is nearly double June’s pre-OTTI income. In July, WesCorp earned $8.7 million in net interest income and nearly $3 million in fees against about $5 million in total expenses. According to financial reports, the NCUA’s reduction of SIP Guarantee expense from 75 basis points to 10 basis points was worth $1.3 million to the regulator-run corporate in July. WesCorp earned $600,000 from the Federal Home Loan Bank, which began paying stock dividends during second-quarter 2009. Operating expenses will continue to improve following July 1 layoffs at WesCorp’s headquarter offices, which affected 30 employees. WesCorp is also closing its satellite check processing locations, which will eliminate another 60 positions over the next year. According to the financial reports, the July 1 layoffs actually had a negative impact on July operating expenses because outgoing employees received severance packages. However, WesCorp also recorded in July the termination of a preconservatorship executive retention plan. When the dust settled, the corporate came in $1.5 million lower in operating expenses compared to the prior month. –[email protected]

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