Washington, D.C. – The Federal Housing Finance Agency (FHFA) and the Board of Directors of the Federal Home Loan Bank of Seattle (Board) have agreed to the stipulation and issuance of a Consent Order by FHFA that resolves certain outstanding capital and supervisory matters.
The Consent Order sets forth requirements for capital management, asset composition, and other operational and risk management improvements. Additionally, FHFA and the Board have agreed to a Stabilization Period that ends upon the filing of the Bank’s June 30, 2011 financial statement. During this period, the Seattle Bank’s classification as undercapitalized will remain in place. Subsequently, the Bank may begin repurchasing member stock at par, upon achieving and maintaining financial thresholds established by FHFA as part of the agency’s supervisory process.
The Consent Order and associated agreement with the Board constitute the Bank’s capital restoration plan and fulfill FHFA’s April 19, 2010 request to the Seattle Bank. The request called for a business plan with steps the Bank would take to resume timely repurchases and redemptions of member capital stock and to refocus the Bank’s business on advances supporting housing finance and community development.
Attachments:
Stipulation and Consent to the Issuance of a Consent Order and;
Consent Order
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030