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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)

Like F&F, FHLB leadership teams are motivated to maximize profits. 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. 19] See CBO letter to Senator Richard Shelby dated April 8, 2004. billion for fiscal 2024.

2008 59
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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)

The leadership of the FHLBs, along with various beneficiaries of their subsidies, has also begun to aggressively lobby and advocate against virtually any proposed change that it views as detrimental to its bottom line. As an example of their lobbying power, in 2004 and 2005 the George W. 19] It peaked in 2004 at just over $1.6

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