WALLINGFORD, Conn. - Constitution Corporate FCU, which already had a $25-million deficit guarantee from NCUA, said this afternoon it lost $100.2 million in 2009, wiping out all of its members' capital.
The 2009 losses followed losses of $84.3 million for 2008, and forced NCUA to issue a guarantee of $25.2 million for Constitution, one of three corporates–along with U.S. Central FCU and WesCorp FCU-currently being kept on life support by NCUA financial assistance.
During the month of December NCUA increased its prior undivided earnings deficit guarantee for Constitution Corporate from $1.3 million to $25.2 million, which allows the $1.3 billion corporate to continue operating even with a members' deficit of $209.4 million.
Today's report comes after those from other corporates showing big losses for 2009 at WesCorp ($1.2 billion); Southwest Corporate $(226 million); Corporate One FCU ($42.3 million) and Southeast Corporate FCU ($46 million).
Last year's losses for Constitution included a $24.4 million charge in the fourth quarter for new losses on residential mortgage-backed securities.
