FHLBanks promote stability during liquidity challenges ...Middle East

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FHLBanks promote stability during liquidity challenges
As the saying goes, a person is entitled to their opinion, but not their own set of facts. A recent opinion piece published here lays on a display that frankly cannot be left unchallenged.  The piece charges that the actions taken by Silvergate Bank to address a temporary liquidity event created when its depositors withdrew funds following the collapse of FTX Trading Ltd. have exposed fatal flaws in the Federal Home Loan Bank (FHLBank) System.  The suggestion that somehow the activities of the FHLBank San Francisco — a privately capitalized cooperative liquidity provider — placed the taxpayer in jeopardy to “bailout” Silvergate Bank could not be further from the truth.    It went

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