How much excess stock does the FHLBank hold per the proposed rule’s definition?
A-5: The Finance Board’s proposed rule defines excess stock as stock held in excess of a stockholder’s minimum required investment; the definition applies to stock held by both members and nonmembers. Under this definition, the FHLBank had $1.45billion in excess stock at year-end 2005. The FHLBank’s definition of excess stock differs, however, from that of the Finance Board. Q-6: How does the FHLBank define excess stock? How much would the excess stock of the FHLBank have to be reduced? A-6: The FHLBank’s Capital Plan defines excess stock as the amount available to capitalize additional Mission Asset Activity. This can be computed as the Finance Board-defined amount of total excess stock ($1.45billion) minus $282million in cooperative capital (which is already capitalizing MAA), and minus $360million in excess stock held by nonmembers (which is not permitted to be used to capitalize additional MAA). Accordingly, we had $806million in available excess stock as of year-end 2005. The prop
