WASHINGTON – The Federal Housing Finance Board has put aside a controversial plan to lift retained earnings at the Federal Home Loan Banks, which could have forced as many as half of the 12 regional banks to trim the lucrative quarterly dividends they pay their bank and credit union members. The capital plan has been shelved indefinitely because of a lack of consensus on the five-member FHFB, the regulator for the 12 FHLBs, sources told The Credit Union Journal. The Finance Board is expected at its meeting Friday to begin filling almost 60 vacancies among public interest directorships on each of the Boards of each of the 12 banks, something that congressional critics have urged it to do.
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