FOR IMMEDIATE RELEASE
ICBA and Other Trade Groups Request Federal Home Loan Bank Capital Registration Delay
Washington, D.C. (June 22, 2004) - The Independent Community Bankers of America (ICBA) and three other banking trade groups have urged the Federal Housing Finance Board (FHFB) to delay adopting a final rule that would require each Federal Home Loan Bank to register its member-contributed capital with the Securities and Exchange Commission.
ICBA, America's Community Bankers, the American Bankers Association, and the Housing Policy Council of the Financial Services Roundtable-which together represent virtually all the members of the Federal Home Loan Bank System-sent the letter seeking delay of the final rule to allow time for more public comment. The letter was sent after the FHFB announced it would meet on Wednesday, June 23, to consider adoption of a final rule.
All four trade associations agreed that the FHLB should re-propose the rule to avoid exposing the FHLB System to risk and uncertainties. This would allow the SEC and the Federal Home Loan banks more time to resolve negotiations over differences involving registration under the securities laws and conform terms to legislation reported by the Senate Banking Committee. Any implementation date for the capital registration rule should occur no earlier than Jan. 1, 2006, the groups urged.
"We strongly urge the Board to exercise an abundance of caution in its consideration of this final rule," the trade associations wrote.