I enjoyed speaking with Barbara Pianese at Financial Times‘ banking publication The Banker. We spoke about the open letter published by me and Cornelius Hurley.
From the article:
“I don’t believe it is appropriate for banks to use the Federal Home Loan Banks as lenders of the last resort. That should be the function of the Federal Reserve,” said Isaac, explaining that unlike the Fed, the FHLBs do not have unlimited lending capacity to stabilise the banking system in a crisis.
Hurley and Isaac published an open letter last week urging President Donald Trump to direct the FHLBs to significantly increase their contribution to affordable housing or face potential elimination.
You can read the full article here.