CHICAGO, Oct. 3, 2011 /PRNewswire/ -- The Federal Home Loan Bank of Chicago (FHLBC) has announced that it has received approval of its capital stock conversion plan from its regulator, the Federal Housing Finance Agency (FHFA). As of January 1, 2012, members' capital stock will be converted to two subclasses of stock, redeemable in five years pursuant to the Capital Plan, which complies with the Gramm-Leach-Bliley Act of 1999. Under the approval, the Bank can submit a plan to the FHFA to repurchase excess stock. The Bank intends to submit such a plan in December to begin repurchasing excess stock within six months of the conversion. Members will receive the Capital Plan later this month.
In a letter to member shareholders, President and CEO Matt Feldman said, "The conversion of the Bank's capital stock is an important development for the Bank and our members, and is indicative of the progress we have made over the last three and a half years."
The Federal Home Loan Bank of Chicago is a $77 billion wholesale bank serving the needs of member housing finance institutions located in Illinois and Wisconsin. Our mission is to partner with our member shareholders in Illinois and Wisconsin to provide them competitively priced funding, a reasonable return on their investment in the FHLBC, and support for community investment activities. For more information, visit www.fhlbc.com.
SOURCE Federal Home Loan Bank of Chicago