Mortgage Backed Securities Push FHLB Chicago Into The Red

Published March 24, 2009, 9:30 p.m. EDT

Updated August 27, 2020, 12:45 a.m. EDT

1 Min Read

CHICAGO – The Federal Home Loan Bank of Chicago reported Monday that continued troubles on its private label mortgage backed securities caused it to report a $119 million loss for 2008. That compares to net income of $98 million for 2007.

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Chicago joins the FHLBs in San Francisco, Boston, Atlanta, Pittsburgh and Dallas in reporting losses in recent weeks.

The Chicago Bank said the losses were related to $292 million of so-called other-than-temporary impaired charges it was forced to accrue on its private label MBSs.

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