Article: Are Home Loan Banks at Risk?(Federal Home Loan Bank)

Byline: Glen Fest

Casey Research in Vermont specializes in investment advice for precious metals and energy. But its chief economist and editor of the firm's cornerstone newsletter, the Casey Report, stirred up a small tempest in financial circles this past summer when he raised questions about the soundness of the Federal Home Loan Bank system.

Bud Conrad, who comments on Federal Reserve policy and other macroeconomic issues for Casey, published a research note warning about the dangers of toxic mortgages and mortgage-backed securities on the books of the 12 Home Loan Banks. After thumbing through the second-quarter report on the banks' combined ...

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