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Home » Store » Taxable » New Capital Structure Allows FHLBanks to Engage in More Risk-Sharing Activities

New Capital Structure Allows FHLBanks to Engage in More Risk-Sharing Activities

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The Federal Home Loan Banks’ new capital structure is likely to boost the system’s capacity to handle higher amounts of risk resulting from increased direct mortgage acquisition, according to a new General Accounting Office report. The new capital structure would eliminate the uncertainty of FHLBank capital, making it permanent by establishing a more solid scheme. Unlike the previous structure, capital under the new regime
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