Two More Federal Home Loan Banks Warn of Losses

Two more federal home loan banks warned of losses in the third quarter due hits to their investment portfolios.

Following the New York Home Loan Bank announcement that it will swing to a third quarter loss and suspend its dividend, the Atlanta and Pittsburgh banks said that they expect losses of $9 million and $7 million, respectively.

The losses are due to declines in the value of asset-backed securities that the banks were forced to sell to maintain a triple-a S&P rating on their overall portfolios. ...