U.S. Central Federal Credit Union released its third quarter 2009 financial statements today, announcing a $308.5 million net loss that depletes remaining member capital shares to only $140 million as of Sept. 30, now an 88.7% impairment.
The additional losses will spur another round of capital adjustments for retail corporates, and in turn, some natural person credit unions.
Last quarter's $320 million in OTTI charges were caused by further deterioration in the $28 billion institution's private residential mortgage-backed securities. On the bright side, U.S. Central's balance sheet gained nearly $1.5 billion in "accumulated other comprehensive income," reducing its unrealized losses to $9.6 billion, down from more than $11 billion as of June 30.
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