WASHINGTON-Five Federal Home Loan Banks have delayed reporting their first quarter financials while they grapple with new accounting rules to help minimize losses.
But several of the banks continue to report big losses anyway. The Boston bank is preparing to report an $83.4-million loss as it struggles with large holdings of private-label mortgage-backed securities. The Seattle bank, also holding underwater private-label MBS, said it expects to report a $16.2-million loss for the quarter. The FHLB Indianapolis reported a $5.9-million loss for the quarter. And the Atlanta bank reported a $1.5 million-first quarter.
The Federal Housing Finance Agency, which regulates the FHLBs, issued guidance for the banks to adopt new processes for determining other-than-temporary impairment and the early adoption of recently revised Financial Accounting Standards Board rules aimed at accounting for hard-to-price MBS.
