The pending financial reform bill would raise expenses for the Federal Home Loan banks, probably reducing the dividends they pay to member banks and thrifts.

The bill would change the formula for deciding how much the 12 Home Loan banks must pay each year to the Resolution Funding Corp., or Refcorp, which was created in 1989 to finance the thrift bailout. Instead of a flat $300 million payment, the banks would pay 20% of annual earnings.

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