Accounting Treatment Limits MBS OTTI Damage As FHLBanks See Net Jump in Second Quarter
August 21, 2009
By adopting revised accounting rules, the 12 Federal Home Loan Banks were able to avert taking a huge hit to earnings from deteriorating non-agency MBS while reporting a collective net income of $1.123 billion for the second quarter of 2009. That performance represented a 56.4 percent improvement from the $718 million gain recorded for the same period in the previous year, according to preliminary...