Federal Housing Finance Agency Office of Inspector General, Evaluation Report, EVL-2014-006, April 16, 2014.  Recent Trends in Federal Home Loan Bank Advances to JPMorgan Chase and Other Large Banks.

“The Federal Home Loan Bank System (System) is comprised of 12 regional Federal Home Loan Banks (FHLBanks) and the Office of Finance. The FHLBanks make secured loans, known as advances, to their members and do so primarily to promote housing finance. After peaking at about $1 trillion in 2008, advances declined 62% to $381 billion by March 2012. However, since then, advances have climbed to nearly $500 billion primarily due to advances to the four largest members of the System: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. From March 31, 2012, to December 31, 2013, advances to these four System members surged by 158% to $135 billion. This report identifies potential causes for the surge in advances to the four largest members, identifies the associated benefits and risks, and assesses the Federal Housing Finance Agency’s (FHFA/Agency) oversight of this area.”