Federal Home Loan Bank system deemed sound

Northwestern Financial Review, Sep 1, 2001

The General Accounting Office pronounced the new capital structure of the Federal Home Loan Bank system sound and recommended no change. The Gramm-Leach-Bliley Act of 1999 required the Federal Home Loan Bank system to implement a uniform capital structure. The GAO said the plan, finalized in January 2001, is a likely improvement over the historic structure but cautioned that it is too early to draw definitive conclusions.

Also in the study, the GAO reiterated an earlier finding that a single federal regulator of the home loan banks and Fannie Mae and Freddie Mac would improve the federal housing finance system's overall safety and soundness.