Los Angeles Times (03/25/08)
The Federal Housing Finance Board approved a plan to allow the 12 Federal Home Loan Banks to buy another $150 billion in mortgage-backed bonds to boost market liquidity. Under the plan, the banks only can purchase bonds guaranteed by Fannie Mae and Freddie Mac, and the increase will last just two years. However, critics of the plan worry that it ultimately will cost taxpayers money. According to Friedman Billings Ramsey & Co. bank analyst Paul Miller, "The Federal Home Loan Banks have been notoriously bad managers of interest-rate risk."
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