Banks May Take Hit on FHLB Stock Holdings

``Now, reports are surfacing that suggest that the FHLBs themselves are running into their own problems, from owning billions in toxic mortgage bonds that are becoming worthless. Moody’s Investors Service said in a report earlier this week that the Federal Home Loan Bank System’s $76.2 billion private-label MBS portfolio contained $13.5 billion in unrealized losses at the end of Q3; values have likely fallen further since that time.''