Federal Home Loan Bank of New York's
Risk-Based Capital Plan Approved
Contact: Eric Amig - 212 441-6807 |
July 18 , 2002 |
New York, New York - On July 18, 2002, the Federal Housing Finance Board, regulator of the 12 Federal Home Loan Banks, approved a new capital plan for the Federal Home Loan Bank of New York.
"The Home Loan Bank worked to develop the new plan with the goals of maintaining the Bank’s co-operative business model, simplicity, and continuity," said Alfred A. DelliBovi, President and CEO of the Bank. "This approved plan meets these objectives. It better positions the Home Loan Bank for future growth and enhanced efficiency, and strengthens our ability to provide value to our member lenders and the communities we serve.”
The Home Loan Bank's new capital structure will have one class of stock: class B stock, with a par value of $100, which can be redeemed on five years' notice, subject to certain conditions. Class B stock with have two subclasses, B1 for membership stock purchase requirements and B2 for activity-based stock purchase requirements. Each member’s new minimum stock requirement will be determined by its individual membership and activity-based stock requirements under the plan.
The Home Loan Bank's transition to a new plan was mandated by the Gramm-Leach-Bliley Act, which was adopted by Congress in 1999. The Act mandated new capital structures for each of the 12 Federal Home Loan Banks that make up the Bank System. The Bank expects that it will implement the new capital structure in the second half of 2003. Before the effective date of the plan, members will receive a written disclosure on the approved plan and the transition process.
The Federal Home Loan Bank of New York is a AAA-rated, Congressionally chartered, wholesale Bank. The $80 billion-asset financial services organization is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The Home Loan Bank currently has capital stock of approximately $3.9 billion outstanding, all of which is held by member institutions. The FHLB of New York serves 297 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.
The foregoing is neither an offer to sell or exchange nor a solicitation of an offer to purchase or exchange any capital stock of the Federal Home Loan Bank of New York. Any such offers will be made only by an information statement to be distributed prior to the effective date of the Bank’s capital plan.