U.S. Central Federal Credit Union, currently under NCUA management, reported a nearly half a billion other-than-temporary impairment loss for the fourth quarter, bringing charges for the year to $1.8 billion.
This impairment wiped out all of the remaining member capital shares and a chunk of the $1 billion capital infusion from the NCUSIF. U.S. Central has just $669 million from the NCUSIF funds that were injected just over a year ago.
"Fourth quarter 2009 OTTI charges of $497.9 million were caused by further deterioration in many of U.S. Central's consumer-based investment securities, particularly non-agency residential mortgage-backed securities," the financial statement read. "Included in this amount are OTTI charges of $142.1 million on securities insured by Ambac-one of several insurers of securities in U.S. Central's portfolio."
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