Like most other investors, the 12 Federal Home Loan Banks are letting their toxic non-agency MBS holdings gradually seep away from their balance sheets rather than try to sell the assets at fire sale prices. The FHLBanks still held $51.3 billion of non-agency MBS at the end of the third quarter, down 9.3 percent from the previous period and off 29.8 percent from... [Includes one chart]