SEATTLE – The Federal Home Loan Bank of Seattle, struggling with low capital, said yesterday it lost another $34.3 million in the second quarter as a result of charges related to its investments in mortgage-backed securities.
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The Seattle Bank attributed its second-quarter loss primarily to $61.8 million of credit-related charges on the bank’s investments in held-to-maturity mortgage-backed securities.
The Bank said last week its federal regulator had classified the bank as "undercapitalized," also as a result of its security investments. The bank has lost $50.5 million so far this year.
The FHLB has seen its own assets drop to $49.4 billion at the end of June from $58.4 billion at the end of December.
