Instead of suing its regulator, America's Community Bankers has decided to ask Congress to address its concerns about the registration of Federal Home Loan Bank stock with the Securities and Exchange Commission."Some members would prefer litigation," ACB president Diane Casey-Landry said. However, Congress is expected to pass legislation next year that deals with the housing government-sponsored enterprises and requires the FHLBanks to register with the SEC. "Since we are supportive of the GSE legislation, we think it would be better to put our focus on the legislative rather than a litigation solution," she said. ACB has been considering legal action since the Federal Housing Finance Board voted in June to require SEC registration. ACB contends that the Finance Board does not have the statutory authority to mandate registration. But that can be fixed in the GSE bill, which is expected to exempt the FHLBanks from certain SEC requirements. "With the re-election of the president and the stronger Republican majority, we think GSE legislation is going to move pretty quickly," the ACB president said. "We believe we are in a good position now."

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