Mission Expansion in the Federal Home Loan Bank System

Studies how the Federal Home Loan Bank System has changed over time and why.

During the current recession, one of the worst in United States history, the federal government undertook a series of sweeping changes related to the home mortgage foreclosure crisis. These changes, in particular to the Federal Home Loan Bank System, have many implications. Mission Expansion in the Federal Home Loan Bank System draws attention to this arcane but growing public-private organizational network, focusing on expansion of its mission since its origin in 1932 and arguing that it did not contribute to the current foreclosure crisis. This timely book offers an intriguing analysis of a growing, relevant institution for those involved in public administration and public policy.

Hoffmann and Cassell provide a comprehensive study of the Federal Home Loan Bank System, a little known but quite important wholesale bank that serves (and is owned by) most of the banks and thrifts in the U.S. That the FHLBS is a government-sponsored enterprise a GSE, like the better known Fannie Mae and Freddie Mac makes this study all the more relevant to today s financial policy debate. Lawrence J. White, Stern School of Business, NYU