WASHINGTON - The Federal Home Loan Bank of San Francisco recently agreed to buy back and retire $200 million in structured notes from California's bankrupt Orange County.

"These transactions will not result in any economic loss to the bank or its shareholders, but will help the county reduce its losses on the bonds," said Dean Schultz, president of the Home Loan bank.

Altogether, three of the system's 12 banks have bought back and retired their debt from Orange County. The Chicago bank bought back $120 million of its debt Jan. 9, and the New York regional bank bought back $50 million in structured notes Jan. 6.

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