The banking industry suffered credit crises in the 1970s, 1980s, 1990s, and 2000s. An unavoidable conclusion is that its loan loss reserves were in all cases too small. 

WhileCongress need not makeurgent changes in the FHLB system, the system's lack of rationale could lead to substantial restraints on its growth--and possibly its eventual decline.

The Federal Home Loan Bank (FHLB) System is a government-sponsored enterprise consisting of twelve cooperatively owned institutions that are regulated by the Federal Housing Finance Board. Shares in the individual FHLBs are owned exclusively by banks, savings institutions, credit unions, and insurance companies. Like Fannie Mae and Freddie Mac, FHLB...

The SFRC urges the Federal Housing Finance Board to require thatFHLB accounting statements recategorize excess stock as a form of debt. Moreover, studying this issue has convinced the SFRC that a piecemeal approach to restructuring capital requirements for the FHLBs is inadequate. The entire structure of capital management across the FHLB system needs a thorough overhaul.

Combined oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks constitutes a logical and effective regulatory domain.

News that the Office of Federal Housing Enterprise Oversight has found accounting problems at Fannie Mae, similar to those that occurred at Freddie Mac, will sharpen the debate over the future of these companies and what the U.S. government should do about them. Up until now, tighter regulation has been...

This book argues that privatization of the government-sponsored enterprises is the only viable way to protect the taxpayers and the economy.

This book argues that privatization of the government-sponsored enterprises is the only viable way to protect the taxpayers and the economy.