Federal Home Loan Banks' von Seggern: Certainty in an Uncertain Economy
WASHINGTON, Oct. 31, 2012 (GLOBE NEWSWIRE) -- Today's release of the third quarter 2012 operating highlights by the Office of Finance show that America's Federal Home Loan Banks create a strong element of certainty in an uncertain economy, according to John von Seggern, president and CEO of the Council of Federal Home Loan Banks.
"Businesses, consumers and policymakers face a less-than-clear environment in which to make financial decisions," said von Seggern. "In this period, one bright spot in the nation's financial system has been the Federal Home Loan Banks."
"These 12 regional cooperatives have reliably provided favorably priced wholesale funding to local lenders while supporting affordable housing and strengthening their capital base through increased retained earnings," he said.
"This reliability in today's challenging environment is important because it demonstrates that, now and in the future, credit and financial services will flow through community-based institutions to every American community in all economic cycles," von Seggern added.
The 12 Federal Home Loan Banks are cooperatives owned by their members who include more than 7,700 community financial institutions of all sizes and many types serving every U.S. state and territory. They raise money on the global markets, and then provide those funds to member institutions. About 80 percent of all community-based lenders use funds from their Federal Home Loan Banks to invest in their local communities by making hometown loans to families, farms and businesses.
Created by Congress, the purpose of the Federal Home Loan Banks is to be a strong and reliable provider of funds for local lenders to finance housing, jobs and economic growth. The Federal Home Loan Bank cooperative model fosters conservative management and a long-term view of financial performance. They protect the taxpayer and assure safety and soundness through multiple layers of protection.
The Council of Federal Home Loan Banks logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13861