BOSTON – The Federal Home Loan Bank of Boston, battered by losses on its mortgage-backed securities portfolio, said last week it is laying off 18 employees as part of an effort to cut expenses by 5%, or $3 million a year.
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The Boston Bank reported a $4.2 million loss for the second quarter, down from a $52.5 million net for the second quarter last year, as a result of losses on its private-label MBSs.
The new cost-cutting moves follow the suspension of the dividends paid to bank and credit unions on the bank’s stock, as well as a halt of the repurchase of excess stock and a lack of funding for the Bank’s Affordable Housing Program.
