FHLBank Execs Face Accounting Mandates

Top executives at the Federal Home Loan Banks will have to comply with several Sarbanes-Oxley Act requirements once the banks register their stock with the Securities and Exchange Commission, according to an advisory bulletin issued by the Federal Housing Finance Board.These requirements include certification of the effectiveness of internal controls and financial reporting, along with an opinion by an outside accountant. The five-page bulletin provides guidance on SEC registration issues raised by the FHLBanks and their member/stockholders. "I am confident the information will be helpful to the banks as well as their members who are following the registration process," Finance Board Chairman Alicia Castaneda said. The 12 FHLBanks are required to register with the SEC by June 30. America's Community Bankers managing director Robert Davis said the guidance answers some of the questions raised by the stockholders in a "constructive way."