The 12 Federal Home Loan Banks (FHLBs) are joining together to boost their capital strength and hopefully stave off harsher measures the Obama administration is considering.

The Treasury Department is currently focused in gradually downsizing Fannie Mae and Freddie Mac and their investment portfolios. But secretary Timothy Geithner also is concerned about the 12 FHLBs and their large investment portfolios, which have total assets of $331 billion.

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