SAN DIMAS, Calif. — WesCorp FCU, the one-time $32 billion corporate credit union run under NCUA conservatorship for the past ten months, today reported a loss of $328.5 million for the month of December as its mortgage-backed securities continued to plunge in value.
December's figures make a $1.2 billion loss for fiscal 2009, following a $7.7 billion loss for 2008, making it very unlikely the corporate's 2,000 credit union members will ever recover the $2 billion of WesCorp capital they have depleted.
December's losses include $335.3 million in so-called other-than-temporary impairments on securities, meaning the auditors believe those are likely losses on those holdings. The losses include further deterioration in the corporate's holdings of collateralized debt obligations, or CDO's, valued one time at almost $600 million. WesCorp said $23.5 million of the OTTI was related to one CDO, while another CDO, that had been written down by 90%, was written down to zero, making three CDOs completely written off.
WesCorp is the second corporate this week to report a loss for 2009, following Thursday's report by Corporate One FCU in Columbus, Ohio, of a $42.3 million loss for last year.
