FHLB Restatement Boosts Affordable Housing Funds

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The Federal Home Loan Bank of Chicago said last week it has restated its financial statements for the past three years, under a supervisory agreement with its federal regulator, which will require it to provide an additional $11.5 million in grants under its Affordable Housing Program.

The net effect of the restatement was a 10% increase in net income from 2001 through September 2004, which will require the Chicago bank to provide an additional $11.5 million in Affordable Housing Program grants under a requirement that 10% of its net income be set aside for the AHP program.

The restatement was the result of a review by the federal regulator of FHLBs, the Federal Housing Finance Board, and voluntary accounting changes for certain transactions.

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