Cincy FHLBank Refiles Registration App

The Federal Home Loan Bank of Cincinnati has resubmitted an application for registering its stock with the Securities and Exchange Commission after revaluing certain hedging transactions and determining that it should not have to restate earnings."We don't have to restate," bank spokesman John Byczkowsi said. After using the SEC's preferred "long-haul" approach to assessing the effectiveness of its convertible-rate advance hedging transactions, the Cincinnati bank determined that it would only have to make a small adjustment to its earning going back to 2001. "As of October 1, 2005, the FHLBank recorded the cumulative effect adjustment, an increase of $1.7 million to net income," according to its filing with the SEC. If the SEC does not raise any issues about the bank's application by Feb. 3, Cincinnati will become the fourth of the 12 FHLBanks to complete the SEC registration process, which was mandated by the Federal Housing Finance Board. The Cincinnati bank originally filed a registration application in June, but withdrew it in August after the SEC a raised number of issues regarding its application of hedge accounting under Financial Accounting Standard 133.