Matz: Corporate CUs should consult auditors on impairments

ALEXANDRIA, Va. (9/15/09)--National Credit Union Administration (NCUA) Chairman Deborah Matz on Monday advised corporate credit unions to "consult with their auditors to determine the potential impairment" of any assets related to U.S. Central Federal Credit Union following the recent release of that corporate credit union's audit.

According to Matz, the capital depletion figures reported by U.S. Central through June 30, 2009 "have not changed."

U.S. Central in its audit released last week reported an other-than-temporary-impairment charge of $4.9 billion and recorded $1.2 billion in expected credit losses related to investments as of Dec. 31, 2008.

According to Matz, these losses do not affect "the depletion of capital" as the NCUA "determined that all depletion would be based on credit losses, not mark-to-market losses, consistent with the new accounting guidance" that was issued by the Financial Accounting Standards Board in April of this year.

See related story in News Now's Sept. 14 edition, "U.S. Central 2008 financial statement released."

Courtesy of cuna.org