The Federal Home Loan Bank of Dallas says it should be able meet a proposed regulatory hike in retained earnings by the time the final rule goes into effect."While there can be no assurances, relying on information currently available, including current projections of business activity and earnings for the remainder of 2006, the bank anticipates that it would be in compliance with the minimum retained earnings requirement and the excess stock limitation by the time the final regulation is likely to become effective," the Dallas FHLBank said. The proposed rule issued by the Federal Housing Finance Board for a 120-day comment period would require the 12 FHLBanks to maintain minimum retained earnings of a least $50 million plus 1% of nonadvance assets. The proposal also limits excess stock to 1% of assets. Critics contend that it would force the FHLBanks to raise $2 billion in new capital. The Dallas bank had $179 million in retained earnings and $69 billion in assets as of Sept. 30. Separately, the Boston FHLBank reported earnings of $135.3 million for 2005, up 51.2% from the level recorded in 2004.

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