WARRENVILLE, Ill. – Members United Corporate FCU on Thursday warned its members of more losses coming, which will further erode dwindling capital.
The $9 billion corporate reported it expects to record additional other-than-temporary impairment losses on its investments based on a review being conducted by auditors McGladrey & Pullen. “These losses are expected to result in a retained deficit and Members United will be required to deplete membership capital shares,” Members United told its members.
The actual loss figures won’t be available until the end of April, according to Members United.
Still, Members United, one of a handful of large corporates weighed down by toxic mortgage-backed securities, said it believes the $150.4 million in remaining capital it holds should be enough to absorb the additional losses.
So far, losses at the nation’s third-largest corporate have erased about $415 million of capital and $320 million of retained earnings since the end of 2008.
As with almost all of the corporates, Members United is operating in the black on a regular basis – a $2.3 million net for the first two months of this year – but continuing losses on its investments are pushing it into the red.
