US Central Credit Union; GMAC;
Central Credit Union Insolvency?
U.S. Central Federal Credit Union, owned by 26 regional credit unions and invests on behalf of 8,400 local lenders...
booked a $760 million Q4 writedown representing almost 2% of the firm's total assets. The writedown reduced U.S. Central's "net economic value" by 50%.
That means total assets now only exceed liabilities and member investments by $1.12 billion, or 2.5%.
The accounting treatment allowed U.S. Central to report net income of $10.6 million during Q4, down 20% from a year earlier.
Were the writedowns and other adjustments included, the company would have had a loss of $758.6 million.
Don't buy a car, don't book a profit... GMAC, the auto and mortgage lending company 49% owned by General Motors...
posted a $724 million Q4 loss vs $1 billion profit a year ago.
The RESCAP mortgage unit, had a $921 million Q4 loss and lost $4.3 billion for the full year.
Auto finance profit slid 77% as GMAC lost $2.3 billion for the year. GM recorded a Q3 loss of $757 million related to its GMAC stake.
The New Economy Collapses... According to Thomson Financial, Q4 2007 earnings are expected to decline by 20.7%.
The main reason for the decline is the financial sector's whopping 105% decrease in earnings. If the sector was removed, earnings would grow by 11.0%.
Homebuilders are also a drag...
the consumer discretionary sector's earnings would have grown by 7%, instead of declining by 15% if homebuilders were removed from the calculation.
The Nattering One muses... Homebuilders (80% of all new jobs since 2001) & Finance (40% of SP earnings)...
were it not for the generous and fraudulent accounting treatment of writedowns, most financial and housing entities would be recording even greater record losses.
All one need do is look at the earnings decrease to gauge the severity of the situation.
With more guarantor & debt downgrades on the way, we are standing on a asset based precipice that is on the verge of collapse.
We sense an MBIA downgrade from AAA is imminent.
U.S. Central Federal Credit Union, owned by 26 regional credit unions and invests on behalf of 8,400 local lenders...
booked a $760 million Q4 writedown representing almost 2% of the firm's total assets. The writedown reduced U.S. Central's "net economic value" by 50%.
That means total assets now only exceed liabilities and member investments by $1.12 billion, or 2.5%.
The accounting treatment allowed U.S. Central to report net income of $10.6 million during Q4, down 20% from a year earlier.
Were the writedowns and other adjustments included, the company would have had a loss of $758.6 million.
Don't buy a car, don't book a profit... GMAC, the auto and mortgage lending company 49% owned by General Motors...
posted a $724 million Q4 loss vs $1 billion profit a year ago.
The RESCAP mortgage unit, had a $921 million Q4 loss and lost $4.3 billion for the full year.
Auto finance profit slid 77% as GMAC lost $2.3 billion for the year. GM recorded a Q3 loss of $757 million related to its GMAC stake.
The New Economy Collapses... According to Thomson Financial, Q4 2007 earnings are expected to decline by 20.7%.
The main reason for the decline is the financial sector's whopping 105% decrease in earnings. If the sector was removed, earnings would grow by 11.0%.
Homebuilders are also a drag...
the consumer discretionary sector's earnings would have grown by 7%, instead of declining by 15% if homebuilders were removed from the calculation.
The Nattering One muses... Homebuilders (80% of all new jobs since 2001) & Finance (40% of SP earnings)...
were it not for the generous and fraudulent accounting treatment of writedowns, most financial and housing entities would be recording even greater record losses.
All one need do is look at the earnings decrease to gauge the severity of the situation.
With more guarantor & debt downgrades on the way, we are standing on a asset based precipice that is on the verge of collapse.
We sense an MBIA downgrade from AAA is imminent.
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