Federal Home Loan Bank member organizations are urging the Federal Housing Finance Board to hold off on approving a final rule that would require the FHLBanks to register with the Securities and Exchange Commission.The Finance Board is scheduled to vote on a final rule Wednesday, and there is a good chance it will be approved. "We request that the Board re-propose the rule as amended and seek additional comment rather than issue it as a final rule," four bank trading groups say in a joint letter to the Finance Board members. Approving a final rule now would interfere with ongoing negotiations between FHLBank and SEC officials to resolve certain disclosure issues. In addition, the groups it would "contradict" legislative language the Senate Banking Committee approved, as part of a GSE bill, that encourages the negotiations. Congress is not expected to pass the bill, which backers say would strengthen the regulation of the housing government-sponsored enterprises. America's Community Bankers, the American Bankers Association, the Independent Community Bankers Association, and the Housing Policy Council of the Financial Services Roundtable signed the June 21 letter.

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