"The floods of 2008 devastated our community with some parts of Cedar Rapids considered unrecoverable. Our bank is only as strong as the community it serves and that makes us committed to rebuilding the community and getting businesses thriving again."
Gary M. Becker, Senior Vice President,
Cedar Rapids Bank and Trust
Cedar Rapids Bank and Trust
Cedar Rapids, Iowa, was among the locations most significantly impacted by the catastrophic floods along the Cedar River in the summer of 2008. Since the flood, Federal Home Loan Bank of Des Moines (FHLB) member, Cedar Rapids Bank & Trust, is helping many flood-affected individuals and businesses recover by providing financing for repair or reconstruction.
To support this effort, Cedar Rapids Bank & Trust secured $3.2 million through FHLB’s Investment Advance Program. These funds have been used to provide low rate loans, which have been primarily used by downtown businesses and building owners as they work to reopen their doors. Together, banks and communities are showing that dedication and solidarity can help overcome any disaster.
Governance and Regulation
Every Federal Home Loan Bank has its own elected board of directors, comprised of members of that Bank and independent (non-member) directors. Statutorily, two-fifths of the directors must be independent, and at least two of those directors must be public interest directors with at least four years of experience in representing community or consumer interests. The boards of directors represent many areas of expertise, including banking, accounting, housing and community development. Directors serve four-year terms and may not serve more than three consecutive terms.
The Federal Housing Finance Agency (FHFA) is the regulator charged with overseeing the Federal Home Loan Banks, created by Congress in the Housing and Economic Recovery Act of 2008. FHFA is led by the FHFA Director and advised by a Federal Housing Oversight Board, composed of the secretaries of Treasury and HUD, the Chair of the SEC and the FHFA Director. There is a Deputy Director for Federal Home Loan Bank regulation, while the Federal Home Loan Bank mission oversight is charged to the Deputy Director of Housing Mission and Goals.
No taxpayer dollars are used in the operation or regulation of the Federal Home Loan Banks. Regulated by the federal government, the Federal Home Loan Banks have a line of credit with the U.S. Treasury. There is no explicit federal guarantee of Federal Home Loan Bank debt.
© , Council of Federal Home Loan Banks