Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
WesCorp reports 7.6 billion loss for 2008
SAN DIMAS, Calif. (6/5/09)--Western Corporate FCU (WesCorp) reported its losses for 2008 at nearly $7.6 billion, according to its audited Consolidated Financial Statements for 2008 and 2007. Losses on investments and securities totaled $7.736 billion but fee and operating income reduced the losses to $7.6 billion. Adjustments to reconcile net income loss to net cash indicated that $7.6 million in losses came from other than temporary impairment loss on securities. Impairment on investments in U.S. Central FCU Paid-In-Capital (PIC) totaled $114.7 million. According to the statements, Member Capital Accounts (MCA) and PIC "have been depleted to cover losses that exceeded retained earnings as of Dec. 31, 2008, and March 31, 2009," as mandated by National Credit Union Administration (NCUA) regulations. WesCorp has derecognized MCA amounting to $929.9 million, effective March 31, through retained earnings. That number is unaudited. The corporate also derecognized PIC accounts amounting to $213 million as of March 31 through retained earnings, and its corporate reserve and undivided earnings accounts were depleted and derecognized. Those figures also are unaudited. As of Dec. 31, WesCorp's capital ratio was -20.40%, well below the 5% required. Its retained earnings ratio was -24.41%, below the 2% required, and its core earning ratio was -23.66%, less than the 3% required. WesCorp and U.S. Central were placed into conservatorship on March 30 by NCUA. The financial statements are posted on WesCorp's website. For more detail, use the link.
Other Resources

RSS





print
News Now LiveWire
Consumer spending is slumping #Market #Economy http://t.co/RI4HS68IuJ
12 hours ago
April is #NationalFinancialLiteracyMonth & @TheNCUA Chair Matz urges #creditunions to help members learn to manage/protect their finances.
14 hours ago
Fed. FI regulators' statmnts on compromised credentials/destructive malware #cybersecurity http://t.co/f4uTBDm1PU http://t.co/zP5Iw6VxZc
16 hours ago
Home prices rising faster than wages: @RealtyTrac #NewsNow #Market http://t.co/wa74mnw3Cu
17 hours ago
.@Nussle dropped by the @ACUMuseum recently. Read about his visit http://t.co/bYe8RRgYLP
18 hours ago