The Federal Housing Finance Agency is considering limits on the ability of large lenders to use Federal Home Loan Banks, or FHLBs, as a financial backstop, though the regulator may still adjust its plans before announcing the recommendations in the coming months, people familiar with the matter tell Bloomberg’s Austin Weinstein and Katanga Johnson. FHLBs have emerged as a flash point after the institutions lent billions of dollars to Silicon Valley Bank (SIVB), Signature Bank (SBNY) and First Republic Bank (FRC) before they collapsed, the report noted. Publicly traded companies in the space include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC).
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