WARRENVILLE, Ill. — According to its newly released September 2008 financials, Lehman Brothers' and GAAP accounting handed $9.1 billion Members United Corporate FCU a stunning change of fortune last month, transforming a record-earning year into a loser.

The corporate charged off half of its $45 million Lehman Bros. holdings last month, took another $15.4 million hit on two mortgage-backed securities and lost another $5 million in fair-value adjustments. The result was a $40.3 million net loss for the month and a $27.8 million year-to-date net loss.

As of Aug. 31, 2008, the corporate had racked up $12.4 million net income year-to-date, almost double 2007's pace.

“It's extremely frustrating,” said President David Preter. “This is, by far, the best year ever in terms of member appreciation and the things we can do from an income perspective. In fact, I think September was our best month in history before the extraordinary items were factored in.”

Rather than wait for the final outcome of the fair value accounting debate, Preter and CEO Joe Herbst said they made the assumption that GAAP standards won't change, and decided to take impairments. The losses took a chunk out of retained earnings, but Members United's capital ratio still remains well above the 5% regulatory minimum, at 6.83%.