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Home loan bank has $4.2m loss

By Todd Wallack
Globe Staff / August 14, 2009

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The Federal Home Loan Bank of Boston, which helps fund home loans for banks around New England, swung to a loss in the second quarter partly because of losses on mortgage-based securities. The bank said it lost $4.2 million in the quarter ended June 30, compared with a $52.5 million profit in the same quarter a year ago. In addition, the bank said it wrote off $70.5 million in credit losses on mortgage-backed securities in the quarter. Nevertheless, the bank still has more than the minimum amount of capital required by regulators to be considered healthy. As of June 30, it had a capital-to-asset ratio of 5.1 percent, up from 4.6 percent on Dec. 31 and more than the 4 percent required by regulators.