August 13, 2024— I missed a couple of posts, a lot going on and mostly positive! I did have three posts drafted per the schedule – all of a conciliatory wait and see attitude – but I could not hit post – so I’m back to myself
The Department of Treasury said it all – along with (beforehand) Senators Cortez Masto and Warren too – plus some others – plus the FHFA. “Allocate at least 20% of income to affordable housing – plus, please use some of your capital (retained earnings) to fulfill your mission!”
Seems straightforward
I hope the Board’s of Directors are miffed. They should be – the Council and management spent two years defending the indefensible and they have nothing to show for it except the ire of those that matter. I think we have a governance issue. That will be explored soon.
The behind closed-door imaginative narrative:
FHLB Management and Board of Directors
“Hello members – we have attempted to defend the status quo for the FHLB system- low borrowing rates, high dividends and meager distributions of profits to affordable housing initiatives, but we screwed it up and now the US Senate, Treasury and the FHFA are questioning our _________ (fill in the blank).
Member Banks
“What? It’s simple, we like borrowing at Treasury rates. Settle the deal, now! Else we’ll fill in the blank”
One Response
Existence?
Clearly there is no need for 11 FHLBanks doing the identical task of assessing the value of mortgage backed securities and mortgages.
Some of the FHLBanks should be merged with the ones leading on mission — time to step up — getting assigned new states.
Value?
Why are taxpayers providing $8 billion a year subsidizing a system that just shovels money to banks and insurance companies for whatever they want?