Without a doubt, the Federal Home Loan banks operate with clear social purpose and accountability. Those who argue otherwise demonstrate a fundamental misunderstanding of Congress' mission for them and a lack of appreciation for the issues facing small banks.

First of all, the Home Loan banks' record is impeccable. They have never lost money. Federal regulators examine them for safety and soundness as well as for mission fulfillment, and they are held to strict asset quality guidelines.

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