The Obscure Network of Government Banks Handing Cheap Loans to Banks

Bloomberg recently ran a story on the Federal Home Loan Banks (FHLB), a network of 11 government banks originally created to ensure mortgages for home buyers. However, they have become a trillion-dollar slush fund bailing out risky banks. Silicon Valley Bank, Silvergate, Signature, and First Republic, among others, took billions from FHLB before failing. The FHLB spent only $355 million on housing affordability last year, exposing their true motivations.