Another leak? Is that what this is?
by Tom on January 14, 2009
in Market Musings, banks
Paul Jackson does a great job of summarizing what’s happening with the Federal Home Loan Bank System. I’m not going to try to summarize what he says, but let’s just say that it kind of looks to me like it’s another “leak in the dam.”
You know the type of thing, there is a flood on the river and they have built a dam to hold the water back? Then they see a leak in the dam and are afraid that it’s going to build and break through and flood the entire town?
Read more……
Serious cracks are showing in the nation’s Federal Home Loan Bank system, and it now appears as if member banks are being forced to take at least some of the hit for it. Various banking industry sources suggested Friday afternoon that some Home Loan banks are squeezing the liquidity faucet, and refusing to pay banks back for FHLB stock they purchased
Banks May Take Hit on FHLB Stock Holdings : HousingWire || financial news for the mortgage market.
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