SAN DIMAS, Calif. – WesCorp FCU reported Friday that unrealized losses on its troubled investment portfolio increased by $310 million in January, to almost $2.9 billion, as the credit markets continued to stall.
The corporate credit union giant reported a loss of $244,000 for the month, following a loss of $2.2 million in December, resulting in a decline of $3.2 million of retained earnings for the two months.
The $25.4 billion corporate reported net income of $57.3 million for 2008, but has yet to determine whether to take an other-than-temporary impairment charge on more than $430 million worth of impaired collateralized mortgage obligations that have lost more than 60% of the value or $3 billion worth of impaired subprime asset-backed securities. The nation’s largest retail corporate (only wholesale corporate U.S. Central FCU is bigger) has also yet to account for charges connected to NCUA’s corporate bailout, including the impairment of paid-in-capital it holds in U.S. Central and the write-down of its NCUSIF deposit.
Unrealized losses on WesCorp’s books include $1.7 billion of market value losses on private-label mortgage-backed and debt securities; and $782 million of losses on fixed-rate commercial mortgage-backed securities interest rate swaps.
