The Federal Home Loan Banks issued well over one trillion dollars in debt last year and generated a record-setting $6.7 billion in net income. The Congressional Budget Office estimates that they receive an astounding $7.3 billion in subsidies. Even so, few Americans – and even few housing specialists – understand how this system of regional banks works. Nonetheless, both the White House and the regulator, the Federal Housing Finance Agency, have prioritized reforms of this little-known government sponsored enterprise (GSE). The common theme behind concerns about the FHLBanks is that they have drifted far from their historic role, established in 1932, and today have a major mismatch between how their large subsidies overwhelmingly buttress private profits while generating comparatively little public benefits.

This webinar offers a moderated discussion with two of the most prominent experts in GSE reforms and financial regulation. Don Layton, who is the former CEO of Freddie Mac, and Kate Judge, who is Professor of Law at Columbia Law School, recently published papers on the FHLBanks. We will discuss the FHLBank model and its flaws, how it has migrated far from its original public mission, the FHLBanks’ role in the recent regional banking crisis, and highlight possible paths to structurally return the FHLBank system to a proper balance between private profits and public benefits.

This webinar is organized by the Consumer Federation of America on behalf of the Coalition for Federal Home Loan Bank Reform.

Panelists:

Donald H. Layton, Senior Visiting Fellow from Practice at the NYU Furman Center Former CEO of Freddie Mac and former Vice Chairman of JPMorgan Chase

Kathryn Judge, Harvey J. Goldschmid Professor of Law and Vice Dean for Intellectual Life and Columbia Law School

Moderator:

Sharon Cornelissen, Director of Housing at the Consumer Federation of America