Members United Corporate FCU Reports More Losses
WARRENVILLE, Ill. – Members United Corporate FCU yesterday reported it lost another $19.1 million in April due to write-offs on its investments and has depleted almost all of its remaining member capital.
The $9.5 billion corporate said the growing losses on its investments will cause it to deplete 89.7% of its $145 million of remaining membership capital shares, leaving a capital cushion of just $3.9 million as of April 30, which also is subject to additional write-downs. The remaining MCS include $11.1 million of shares that have been put on three-year notice of withdrawal but are still available to offset losses.
Since November 2008 Members United has lost all of its $308.2 million of capital invested with U.S. Central FCU and $562.3 million on its own investments, a total of $870.5 million. “These losses completely eliminated the beginning retained earnings balance and have required the full exhaustion of PIC and the depletion of substantially all MCS,” the corporate told its members yesterday.
Members United plans to review its investments again as of June 10 and will report any additional losses in July.