Later today, the $22 billion Western Corporate FCU will announce$25.4 in new OTTIs due to monoline insurer Ambac's decliningability to meet bond insurance claims, NCUA spokesman JohnMcKechnie told the Credit Union Times.
|Fourth quarter financial statements will be adjusted to reflectthe new losses, he said. The corporate will further explain themove to members on WesCorp's monthly financial performanceconference call.
|WesCorp's Ambac-insured securities currently have a face valueof $293 million, he said.
|U.S. Central FCU announced yesterday the March 25 seizure ofAmbac Assurance Corp's residential mortgage backed securitiesguarantees by Wisconsin's insurance commissioner caused it torecord additional OTTIs in 2009 worth $274 million.
|Members United Corporate FCU and Southwest Corporate FCUtogether have $520 million worth of securities wrapped byAmbac.
|In total, the corporate network could lose as much as $400million due to Ambac's inability to meet claims. McKechnie said theNCUA Board has not yet made any determinations about futureassessments.
|Audited 2009 year-end financial statements released yesterday bythe $35 billion U.S. Central show the value of NCUSIF's $1 billioncapital note is just $395 million. That is the only form of capitalremaining on the seized cooperative's books.
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