article thumbnail

The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 2)

The Stoop (NYU Furman Center)

18 It is worth noting that the Congressional Budget Office (CBO), from time to time, estimates the value of the subsidies to the FHLB system. It did so, for example, in 2004 to cover the budget year 2003, when its estimate was $3.2 billion of losses by just four of the FHLBs in 2009 and 2010. billion for fiscal 2024.

2008 59
article thumbnail

The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 1)

The Stoop (NYU Furman Center)

7 Additionally, GSE subsidies and privileges are crafted to largely avoid showing up as a federal budget expenditure, thus avoiding competing with other priorities for scarce tax dollars. As an example of their lobbying power, in 2004 and 2005 the George W. 19] It peaked in 2004 at just over $1.6

2008 88