President's Report

July 1, 2008

At the Bank

Advances Averaged $86.1 Billion

In May, advances averaged $86.1 billion, up $2.2 billion from April and $26 billion from May 2007.  Month-end advances totaled $87.9 billion.  In a recent analysis of the Federal Home Loan Banks, Standard & Poor's wrote, “Without adding unwarranted credit risk, system banks afforded members a consistent and reliable liquidity channel that may have been taken for granted without this scenario. . . .  The FHLB System became, and continues to be, a trusted source of liquidity for all lenders who participate in the U.S. housing market.”  We appreciate the recognition by S&P.  The Home Loan Bank is a trusted source of liquidity for the housing market, but we are a support player.  We assist the community banker who is always there to make responsible loans.  Yes, the community banker has access to the world’s capital markets through the Home Loan Banks and other regulated government-sponsored enterprises.  Yet the community banker never loses his or her focus on the people on Main Street who are customers and neighbors today and every day.

Should you have any questions on how the FHLBNY can help meet your liquidity needs, please contact Adam Goldstein, Senior Vice President, Head of Sales and Marketing, at 212-441-6703 or Jim Feeney, Vice President, Sales Manager, at 212-441-6707.

Nominations Period Opening for 2008 Election of Directors of the FHLBNY

On July 7, 2008, nomination certificates and related information regarding the 2008 Director election process will be mailed to all eligible participating stockholders in New Jersey and New York.  One seat from New Jersey and two seats from New York are up for election this year.  No seats for Puerto Rico and the U.S. Virgin Islands will be up for election this year.  Each of the individuals elected will serve a three-year term starting on January 1, 2009.  The deadline to return your nomination certificates to the FHLBNY is 5:00 p.m. on August 6, 2008.

FHLBNY Board of Directors Selects Jay M. Ford to Fill Vacant New Jersey Seat

The Home Loan Bank Board of Directors has selected Jay M. Ford, President and Chief Executive Officer of Crest Savings Bank, Wildwood, New Jersey (FHFB ID 2422), to fill the unexpired term of former FHLBNY Director David Lindstrom.  The term ends December 31, 2008.  We welcome Mr. Ford to the Board and look forward to benefiting from his many years of experience and considerable expertise in the financial services sector.

In Washington

U.S. Senate Considers GSE Reform Bill

On May 20, 2008, the Senate Banking Committee approved, by a vote of 19 to 2, the GSE Reform Bill as a component of the Housing and Economic Recovery Act.  In June, the full Senate began debating the measure.  So far, the Senate has had two procedural votes that show strong support for the bill.  Indications are at this time that the Senate will pass it in July.  The GSE reform section of bill would abolish the Federal Housing Finance Board and OFHEO and would establish a new regulator – the Federal Housing Finance Agency – for the Federal Home Loan Banks as well as Fannie Mae and Freddie Mac.  (See my June 3, 2008, President’s Report for a summary of the bill.)

We will continue to work closely with the Members of Congress and their staffs, the Council of the Federal Home Loan Banks (the trade group that represents the Federal Home Loan Banks), as well as the ABA, ICBA, and other trade groups to help ensure that the legislation as finally adopted will permit the Federal Home Loan Bank System to continue to fulfill its mission of supporting the 8,000 member lenders to ensure that credit remains available for homes and businesses on Main Street.  In this regard, I would like to thank Senators Robert Menendez and Charles Schumer, members of the Senate Banking Committee, for their ongoing support of the FHLBanks.

The Home Loan Bank team thanks our members for your use of our products and services to expand the responsible availability of mortgage credit, to compete effectively in your market, and to promote strong communities.  And we hope each of you has an enjoyable weekend in Celebration of Our Nation’s Birthday.

 

Sincerely,
Alfred A. DelliBovi
President & CEO


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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations of these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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