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Home » Store » Taxable » Researchers Claim Advances Pose Risks

Researchers Claim Advances Pose Risks

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Taxable

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The debate over GSE reform has so far focused on whether Fannie Mae and Freddie Mac present risks to the financial system. But a group of researchers has suggested that GSE critics have overlooked another systemic threat: the Federal Home Loan Banks. According to economists with the Federal Reserve and the Federal Deposit Insurance Corp., commercial banks that are members of the FHLBank System are encouraged to undertake riskier endeavors because funds borrowed from the…
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