FDIC May Still Threaten Advances Over Covered Bonds
July 23, 2008
The Federal Deposit Insurance Corp. has issued its final policy statement on the treatment of covered bonds in the event of a bank failure, opting to include Federal Home Loan Bank advances within the definition of “secured liabilities,” going against the wishes of a number of the FHLBanks. However, it does not impose a cap on FHLB advances, a position advanced by the Mortgage Bankers...