SEATTLE - (03/07/06) The Federal Home Loan Bank ofSeattle, which is struggling to shed underwater assets, reported a$9.1 million loss for the fourth quarter of fiscal 2005, pushingdown fiscal year earnings to just $1.7 million. The FHLB realizedlosses of $6.4 million on the retirement of $236 million oflong-term, high-cost debt, and losses of $5.4 million on thepremature termination of leases. The debt retirement helped theSeattle bank to trim the unrealized losses on its investmentportfolio to $360 million at year-end, down from paper losses of$400 million at the end of the third quarter. The Seattle bank alsocontinued to wind down its secondary mortgage market program,called Mortgage Purchase Program, by selling 16% of the portfolio,or $1.4 billion, to $7.2 billion at year-end. The shedding of itssecondary mortgage market program was part of a unprecedentedsupervisory agreement the Seattle bank signed with federalregulators last year that requires it to exit the secondarymortgage market, ban all early redemption of stock, halt alldividend payments on stock for three years, and refocus itsbusiness on providing low-cost advances to help finance mortgagelending by participating financial institutions. The Seattle FHLBis owned by 375 financial institutions in the northwest, including79 credit unions.
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Backed by tech billionaires, the crypto-focused digital startup bank's timely application reflects the current administration's openness to new tech-driven banking models — and raises concerns about regulatory impartiality, considering its backers' political ties.
10h ago -
The application follows on the heels of Circle and Wise, as crypto and payment companies seek crypto custody approval and direct access to the Federal Reserve payment system.
10h ago -
The credit union regulator, responding to a recent executive order, has established strict new standards for prosecuting financial crimes. Regulators are now supposed to make criminal referrals only in cases where putative defendants appear to have known they were breaking the law.
11h ago -
Three bank trade associations recommended phasing out paper checks to reduce government payment fraud in a joint statement submitted to the U.S. Treasury.
July 2 -
Baton Rouge-based Investar Holding Corp. has agreed to pay $84 million for Wichita Falls Bancshares, which operates five branches in the Dallas-Fort Worth Metroplex.
July 2 -
A federal judge in New York has rejected Huawei's effort to toss charges alleging bank fraud, sanctions violations and trade secrets theft.
July 2