FHLB Restatement To Boost AffordableHousing Funds

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CHICAGO - (03/23/05) -- The Federal Home Loan Bank ofChicago said last week it has restated its financial statements forthe past three years, under a supervisory agreement with itsfederal regulator. The net effect of the restatement was a 10%increase in net income from 2001 through September 2004, which willrequire the Chicago bank to provide an additional $11.5 million inAffordable Housing Program grants under a requirement that 10% ofits net income be set aside for the AHP program. The restatementwas the result of a review by the federal regulator of FHLBs, theFederal Housing Finance Board, and voluntary accounting changes forcertain transactions.

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