SEATTLE-The Federal Home Loan Bank of Seattle, which reported a $93.8 million loss for the third quarter, remains "undercapitalized," a move that will prevent it from paying dividends or repurchasing capital stock, regulators said.
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Edward DeMarco, acting director of the Federal Housing Finance Authority, said he took the action because of uncertainty concerning collateral values and potential for future losses on the Seattle Bank's private-label mortgage-backed securities portfolio, the FHFA said.
The Seattle Bank is one of several FHLBs - the others include Boston, Chicago, San Francisco and Pittsburgh-to report large losses for the third quarter related to its private-label mortgage-backed securities holdings.
