Despite changes by the Financial Accounting Standards Board (FASB) in March that were expected to stem fallout caused by other-than-temporary impairment (OTTI) charges at the Federal Home Loan banks, the system is continuing to suffer massive losses on its portfolio holdings.

Many Home Loan bank representatives praised the FASB after it amended its rules concerning OTTI to limit them solely to credit risk. But it has become clear that the credit risk embedded in the system's portfolios of private-label mortgage-backed securities is significant.

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