. . . Farm Lender Is Looking, Too
NEW YORK -- The Federal Farm Credit Banks' guidelines for debt sales are under review in the aftermath of Salomon Brothers Inc.'s disclosure last month that it provided false information to the federal agencies to get bigger bond allocations at agency debt sales.
"We have not taken any action at this point in time, but we are thoroughly reviewing all of our policies, procedures, and practices," said Jim Brickley, president and chief executive officer of the Federal Farm Credit Banks Funding Corp., Jersey City.
"Once we've completed that review, we will decide what actions are appropriate," he added.
The debt-selling group has 105 federal farm credit banks as its members.
Salomon made its disclosure in an Aug. 14 press release. Mr. Brickley said he could not respond to questions about whether his agency was aware before then of any dealers' overstating sales.
The federal farm credit banks, the Federal National Mortgage Association, and Federal Home Loan Banks are the dominant issuers in the federal agency debt market.