The Big Take
A $1.5 Trillion Backstop for Homebuyers Props Up Banks Instead
The Federal Home Loan Bank system provides billions to banks curtailing mortgage lending, and millions to its executives
The first sign of deep trouble in US banking this year came from a sunbaked office complex in a San Diego suburb. There, a small firm called Silvergate Capital Corp. assured investors it was weathering a run on deposits. Its lifeline: about $4.3 billion from a Federal Home Loan Bank.
Heads turned across the financial industry.