Credit Union Journal Daily Briefing | Friday, October 30, 2009
CHICAGO – The Federal Home Loan Bank of Chicago yesterday said it expects to record a loss of $150 million for the third quarter, due to write-downs on its private-label mortgage-backed securities.
The Chicago Bank blamed write-downs of $169 million on private-label MBS and losses on derivative contracts and hedging of $114 million in the quarter. In the year-earlier quarter, the FHLB had net income of $33 million.
The Bank reported a $119 million loss for 2008 and a $103 million net for the first six months of 2009.
The Chicago Bank is one of a handful of FHLBs that have been weighed down by MBS, particularly non-agency securities, known as private-labels.
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