X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-Federal Housing Finance Board Director John Korsmo said last week that he was neither hot nor cold about privately insured credit unions becoming eligible for Federal Home Loan Bank membership. Following a speech at America’s Community Bankers Government Affairs Conference, Korsmo told reporters, “The banks are divided on that. Obviously the Cincinnati bank is a big proponent, which is why the sponsors are who they are.” House Financial Services Chairman Mike Oxley (R-Ohio) has been trying to push and shove regulatory relief legislation-which includes a provision to allow privately insured credit unions to join the FHLB System-through Congress for more than a year now. The director also indicated that the decision was out of his hands. “Congress tells us who the members of the system are going to be,” he said. Also concerning credit unions, Korsmo talked during his speech about financial institutions being permitted to join more than one FHLB. He said that his office is currently studying the issue, but there are no guarantees. “This very important development requires, I believe, a fresh look at single versus multidistrict memberships, and especially at the impact limiting memberships might have on the safety and soundness of individual banks or the system,” he commented. Korsmo said only two sure things came out of discussions with the FHLBs on the subject: 1) consolidation will continue, and 2) it will affect the FHLBs “in some way.” Beyond that, he said, opinions are splintered. Multi-district membership typically arises when institutions merge across state lines.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.