WASHINGTON - (04/20/06) -- The Federal Housing Finance Boardthis week approved an application by the Federal Home Loan Bank ofChicago to float $1 billion of subordinated debt in order tofinance the purchase of excess stock from its member banks andcredit unions. The deal will be the first time an FHLB has issueddebt not backed by the entire FHLB system and its 12 banks. TheChicago FHLB plans to issue the 10-year debt in June and it will beused solely to buy back the excess stock.
FHLB Gets Go-Ahead In StockBuyback
April 21, 2006, 1:00 a.m. EDT
1 Min Read
![Fed Chairman Jerome Powell said the central bank had previously concluded that asset-based borrowers were able to secure financing elsewhere. Treasury Secretary Steven Mnuchin said “small hotels do not fit into [the Main Street Lending Program] because they already have other indebtedness.”](https://arizent.brightspotcdn.com/dims4/default/28d67cc/2147483647/strip/true/crop/1598x900+1+0/resize/460x259!/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.amazonaws.com%2Fb3%2F79%2F3b1db6264efa9eab86e05b296afc%2Fpowell-jerome-mnuchin-steven-bl-092220.png)
