Members United Corporate Federal Credit Union announced Friday a nearly $150 million net loss for October 2009, split almost evenly between U.S. Central Federal Credit Union capital losses and other-than-temporary impairments resulting from its own 3rd quarter investment review.
Some employees also spent their last day at Members United Friday, but officials said they were part of a staff reduction move made months ago.
The Warrenville, Ill.-based corporate wrote off all of its remaining $74.6 million in U.S. Central capital as of Oct. 31. An additional charge of $77 million was recorded for new OTTI from the corporate's securities portfolio.
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While Clayton's cash flow projections fully discount Ambac support after Dec. 31, 2010, Members United elected to not take the additional $37.5 million OTTI.
"Clayton … also recommend their clients make their own determinations, in consultation with their auditors, regarding questions of impairment for securities where principal and interest payments are insured," management wrote in the notes that accompanied financial statements.
The $8.5 billion corporate said it will eliminate its Oct. 31 $146.8 million retained deficit as of Nov. 30, which will result in a 50.2% depletion of member capital share balances. Since Nov. 30, 2008, Members United has recorded $308 million in U.S. Central capital impairments and $424.3 million in cumulative OTTI from its investments.
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