NDBA - North Dakota Bankers Association
04/17/2024 | Press release | Distributed by Public on 04/17/2024 07:51
U.S. GAO Unveils Report of Federal Actions Leading Up to Bank Failures of 2023
The U.S. Government Accountability Office (GAO) has released a report reviewing the roles in which the FHLBanks played with regard to the bank failures from March through May 2023. The report underscores the respective FHLBanks "relied on established policies, procedures, and agreements with the relevant Federal Reserve Banks to help…transfer pledges of collateral between the FHLBanks and the Federal Reserve Banks."
The report also states the "FHLBNY has received full repayment for Signature Bank's advances, and FHLBSF has received full repayment for SVB's advances and repayment of First Republic Bank's advances that have reached maturity. The bank that assumed First Republic Bank's advances indicated that it intends to repay them according to the advance terms…" and the "…repayment of FHLBank advances for a failed bank does not impose a direct cost to the Deposit Insurance Fund."
To read more, visit: https://www.gao.gov/products/gao-24-106957
The report also states the "FHLBNY has received full repayment for Signature Bank's advances, and FHLBSF has received full repayment for SVB's advances and repayment of First Republic Bank's advances that have reached maturity. The bank that assumed First Republic Bank's advances indicated that it intends to repay them according to the advance terms…" and the "…repayment of FHLBank advances for a failed bank does not impose a direct cost to the Deposit Insurance Fund."
To read more, visit: https://www.gao.gov/products/gao-24-106957