ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release February 14, 2001 #01-13
E-mail: [email protected]

ACB, STATE GROUPS URGE FHFB TO MODIFY FHLBANK SYSTEM CAPITAL RULE

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WASHINGTON, D.C. — America’s Community Bankers and 16 state trade groups have urged the Federal Housing Finance Board to modify its capital rule for the Federal Home Loan Bank System. The FHFB has scheduled a meeting for Feb. 28 to take up issues involving the rule.

“While the final rule should give the FHLBanks the necessary flexibility to develop capital plans appropriate for their stockholders and ensure that a suitable degree of commonality exists, we request that the Finance Board make a couple of modest, but important changes,” ACB and the state groups said in letters to FHFB board members.

To ensure commonality among the FHLBanks’ capital plans, adequate financial transparency for members across the 12-Bank system, and to avoid unintended competition among the capital plans, the groups asked the FHFB to publish for a 30-day comment period the capital plans as they are submitted and to wait until all plans are submitted before approving any Bank’s plan.

The FHFB was also urged to require — not just encourage — FHLBank members to purchase activity-based stock for such significant activities or programs as the mortgage partnership programs.

Members of ACB and the state groups collectively hold a majority of the stock of the FHLBank System.

ACB’s Letter is ATTACHED.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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