The Federal Home Loan Banks may see substantial impairment in the value of their $76.2 billion of private-label MBS, according to Moody's Investors Service.

Under a "worst case" scenario, Moody's estimated that the impairment would be so great that only four of the 12 FHLBanks would remain above regulatory capital minimums, though Moody's said this degree of impairment is unlikely.

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