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Critics of FHLB membership rule aren't thrilled with prospect of repeal

Mar 22, 2018 - American Banker

WASHINGTON - A bill to allow captive insurance companies to be reinstated as members of the Federal Home Loan Bank System appears to be dividing the Home Loan bank community.

The bill, sponsored by Sen. Tammy Duckworth, D-Ill., wouldreverse a 2016 ruleby the Federal Housing Finance Agency that had expelled captive insurance companies from FHLB membership.

Community banks and the Home Loan banks had opposed the FHFA proposal, particularly the restrictions on existing Home Loan Bank Sy...