SAN DIMAS, Calif. – WesCorp FCU on Thursday reported further deterioration in its collateralized debt obligations and subprime paper added another $49.4 million in losses for the month of March.
March’s losses wiped out almost $26 million in net income in January and February and sank the troubled corporate credit union into the red to the tune of $36.3 million for the first quarter. WesCorp had a $1.2 billion loss for 2009.
The WesCorp report came a day after U.S. Central FCU restated its financials for the fourth quarter of 2009 to show an additional $274 million loss, for a total loss of $2 billion for the year.
During March, WesCorp added other-than-temporary impairments of $2.5 million for its CDOs; of $5.1 million for its subprime asset-backed securities; of $5.9 million for its private-label mortgage securities; and a whopping $34.3 million for its private label option arm-backed bonds.
As of March 31 the average weighted life of WesCorp’s portfolio was 4.09 years.
WesCorp, which has been run under NCUA conservatorship since last March, has depleted all of its member capital and has a retained earnings deficit of $4.9 billion, according to yesterday’s report.
The one-time $34 billion corporate held $23.5 billion in assets at the end of March.
