Delay Sought in FHLBank Stock Registration

Four major banking trade groups are asking the Federal Housing Finance Board to delay the registration of Federal Home Loan Bank stock until all 12 district banks have completed their capital plans.The Finance Board has directed the Federal Home Loan Banks to register with the Securities and Exchange Commission by August 2005, but it appears that three FHLBanks may not complete their capital conversion plans by August. The trade groups are concerned that some banks may have to have their capital plans reviewed by the SEC and not just the Finance Board. "We understand that a Federal Home Loan Bank that has not implemented its capital plan will have to file [SEC] registration documents twice," says a joint Oct. 15 letter. "We strongly urge you to reconsider the required effective date for registration to give all the Federal Home Loan Banks the time necessary to fully implement their capital plans." The letter was signed by America's Community Bankers, the American Bankers Association, the Financial Services Roundtable, and the Independent Community Bankers of America.