SAN DIMAS, Calif. – WesCorp FCU, the troubled corporate credit union giant taken over by NCUA earlier this year, reported another $349.2 million in losses on Friday for the month of September.
The September numbers brought year-to-date losses for the one-time $32 billion corporate to a staggering $876.4 million, after a $5.6 billion loss for 2008.
September’s losses were caused by so-called other-than-temporary impairment charges of $355.6 million on its mortgage securities. To date, WesCorp has taken $6.5 billion of losses on its securities.
The losses have eliminated all of WesCorp’s $2 billion of member capital, and have been passed down to the corporate’s 1,022 natural person credit union members across the country.
Most of the WesCorp losses are occurring on securities backed by Option ARM mortgages, and to a lesser extent by those backed by so-called Alt-A loans, WesCorp said.
WesCorp floated $1.5 billion in medium-term notes to help it continue to hold some of its impaired securities in hopes the market will recover.
