LENEXA, Kan. – U.S. Central FCU, which has been grappling with growing unrealized losses on its vast holdings of asset-backed securities, said today it expects to report a $1.1 billion loss for 2008 when it presents its financial statements early next month.
The central bank for credit unions attributed the huge loss to a $1.2 billion other-than-temporary impairment it is taking on those securities.
Through the first 11 months of 2007 U.S. Central reported unrealized losses of almost $10 billion on its securities.
The announcement comes as NCUA agreed to provide a $1 bill emergency note, a cash infusion, to the corporate to help offset anticipated losses on U.S. Central’s vast portfolio of mortgage backed securities.
Several other corporates are also dealing with growing unrealized losses. The corporate network is holding an estimated $18 billion in unrealized losses.
