DALLAS – The Federal Home Loan Bank of Dallas said losses on its hedging and derivatives caused it to report a fourth quarter loss of $67.6 million.
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As a result, net income for the year was $79.3 million, down 40% from last year’s $129.8 million.
The Dallas Bank’s fourth quarter loss compared to net income of $75.1 million for the third quarter. The largest component of the Bank’s fourth quarter loss quarter was a $64.4 million mark-down of derivatives and hedges, which more than reversed a $56.3 million gain from these activities for the third quarter.
The Dallas Bank said it cut dividend rate will to a paltry 0.50% for the first quarter and the Bank anticipates paying dividends for the rest of 2009.
