Glenn Latham, head of the Alabama Credit Union Administration, said he was among the first to learn the League of Southeastern Credit Union was questioning his regulatory action against Mutual Savings Credit Union.

The news contained in June 30 financials released by Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union was quickly trumped by U.S. Central's announced June losses,

Nonagency mortgage-backed securities were primarily responsible for a $538.3 million net loss reported by the $19 billion Western Corporate Federal Credit Union for the month of June.

When retail corporates officially told members how badly U.S. Central's second-quarter losses had damaged their own capital coffers, they received little response.

U.S. Central Federal Credit Union's second-quarter financials revealed additional other-than-temporary-impairment charges totaling $537 million.

In a strange twist of accounting fate, U.S. Central Federal Credit Union's majority stake in the Central Liquidity Facility was negatively affecting the CLF's ability to borrow and could have affected

Central Corporate Credit Union President/CEO Bill Walby said his team didn't anticipate U.S. Central's losses before others did. However, the corporate's management and board did make some key policy decisions.

The $4.2 billion Corporate One Federal Credit Union is one of only seven retail corporates still reporting positive reserves and undivided earnings after accounting for U.S. Central's half-billion dollar plus second quarter net loss.