Constitution Corporate FCU (Wallingford, Conn.) reported that losses had totally depleted all its capital and was now operating with a Prior Undivided Earnings Deficit of $2,442,918 guaranteed by the National Credit Union Share Insurance Fund (NCUSIF).
The corporate credit union reported a loss of $77.4 million through the first nine months of 2009, resulting from OTTI charges of $79.9 million.
Below are the unaudited income and balance sheet statements for the corporate credit unions (click on images to enlarge).
So, if you consider a corporate credit union with an undivided earnings deficit of $2.4 million one of the living dead; where does that put the FDIC insurance fund, which currently has an $8.2 BILLION negative balance? That's an $18.6 BILLION swing from the prior quarter and reflects a much bigger problem than Constitution Corporate's negative undivided earnings.
ReplyDeleteYou are grasping at straws. Such a comparion is like comparing apples to oranges. The FDIC has the full faith and credit of the federal government, while Constitution Corporate is a privately owned corporate credit union.
ReplyDeleteNot grasping at straws Keith, just recognizing that the current financial crisis extends beyond the credit union world, something you seemingly fail to recognize. While you spend countless hours posting everything negative about credit unions, your banking empire continues to crumble. Despite hundreds of billions of dollars in tax payer funded bailouts, the banking sytem poses a much greater risk to the world's economy than does the credit union sector. And by the way, who backs Constitution Corporate's share deposits? The NCUA, which in turn is backed by the full faith and credit of the federal government. Perhaps, rather than pointing fingers, you should utilize your expertise trying to find solutions.
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