The US system of Federal Home Loan Banks, a key source of cash for regional banks, is seeking to raise about $64 billion through the sale of short-term notes, according to people with knowledge of the matter.
(Bloomberg) — The US system of Federal Home Loan Banks, a key source of cash for regional banks, is seeking to raise about $64 billion through the sale of short-term notes, according to people with knowledge of the matter.
The offering comes amid a banking crisis that has toppled three lenders in less than a week. The FHLB system of 11 regional banks is a Depression-era backstop that private banks can use for short-term funding without the stigma of taking money from the Federal Reserve. It’s widely seen as a safety net and has been called the “lender of next-to-last resort” — a play on the nickname for the Fed’s famed discount window.
The five-part offering of floating-rate notes is being led by Barclays Plc, Nomura Holdings Inc., Wells Fargo & Co. and Citigroup Inc.
–With assistance from Austin Weinstein.
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