Now that U.S. Central Federal Credit Union has released its 2008 audit, members can begin their own audit process and finally close the books on other-than-temporary impairments incurred so far by the corporate network.
But how will U.S. Central and other corporate loss estimates stack up against real losses?
One corporate executive, requesting anonymity, told Credit Union Times that one U.S. Central member spoke out against possible future write-downs of remaining member capital accounts during a Sept. 14 conference call. Due to GAAP accounting rules, once a bond is permanently impaired, it can't be written back up if it performs better than anticipated. Likewise, U.S. Central told its members, once the wholesale's member capital shares are gone, they're gone for good, no matter how well the portfolio performs.
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