An over-concentration of subprime MBS caused the failure of Members United Corporate Federal Credit Union, the one-time $14 billion corporate that is restructuring itself, National Credit Union Administration (NCUA) said in a new report issued last night.

By the time of its September 2010 takeover by NCUA, Members United, the conglomeration of three corporate credit unions, has almost $5 billion – 70% of its investments – tied up in either subprime or Alt-A MBS, according to the report by NCUA’s Office of Inspector General.

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