FHLBank System Delays Earnings Reports

The Federal Home Loan Bank System has once again delayed issuing its third-quarter and annual financial reports as the 12 banks prepare to register their stock with the Securities and Exchange Commission by June 30.Initially, restatements and supervisory problems at some of the banks delayed the release of the consolidated financial statements. Now the banks are conducting reviews of other accounting matters, "primarily related to accounting for derivative transactions dating back to the adoption at Jan. 1, 2001," the system's Office of Finance said. Several weeks ago, the Office of Finance announced that the third-quarter and 2004 annual reports would be published by April 15. All 12 FHLBanks have submitted draft registration forms with the SEC and received comment letters back from the SEC. Seven FHLBanks have already responded to SEC input by resubmitting draft forms, according to Federal Housing Finance Board spokesman Douglas Duvall. "Progress is being made, but significant challenges remain," he said.