The Federal Home Loan Bank of New York is concerned it may have to take an impairment charge against $2 billion in private-label MBS and it has reduced the fourth quarter dividend to 1.1%.

The FHLBank has subjected its private-label MBS to a "substantial review," under the "other than temporary impairment" accounting rules that should be completed in late February, according to FHLBank president Alfred DelliBovi.

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