The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a proposed rule that would establish procedures to enable Federal Home Loan Banks (Banks) to voluntarily merge. The Housing and Economic Recovery Act of 2008 (HERA) amended the Federal Home Loan Bank Act to permit any bank to merge with another bank with the approval of its board of directors, its members, and the director of FHFA. The proposed rule does not relate to any liquidation, reorganization, conservatorship, or receivership undertaken pursuant to the authority set forth in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, nor does it apply to any supervisory actions that FHFA may take with respect to the banks. Comments must be received 60 days from publication in the Federal Register. Click here to view the proposed rule. For more information, visit www.fhfa.gov.
About the author