LEDYARD, Conn. — Members United Corporate Federal Credit Union CEO Joseph Herbst told attendees at the corporate's Economic Forum here that unrealized losses are just that.
Because corporates' No. 1 job is to provide liquidity, Members United lists all of their securities as available for sale for accounting purposes, when in fact nearly all are held until maturity. He said if Members United had actually classified the securities as held to maturity, it would be reporting no unrealized losses right now.
The concern with unrealized losses really only comes into play when they must be sold, which Herbst said he did not foresee at this time. The Members United portfolio currently is reporting $880 million in unrealized losses, according to the CEO, but that figure has leveled out over the last couple months.
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