FHLB Gets Go-Ahead In StockBuyback

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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.

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