The $18 billion Western Corporate Federal Credit Union recorded other-than-temporary-impairment charges totaling $356 million for the third quarter of 2009, the NCUA announced today.
WesCorp's $6.5 million net income offset that amount slightly to produce a $349 million net loss. The quarter's OTTI mostly came from previously impaired securities; only $11 million represented securities not previously impaired. To date, WesCorp has taken $6.5 billion in OTTI write-downs that have exhausted all capital, resulting in a retained earnings deficit of $4.6 billion as of Sept. 30.
The NCUA-run WesCorp and U.S. Central's OTTIs were both based upon a review of all private label mortgage backed securities by Clayton Fixed Income Services, Inc.
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