Is Federal housing money supporting big bank balance sheets? | 2014-04-16 | HousingWire

Is Federal housing money supporting big bank balance sheets? | 2014-04-16 | HousingWire

After peaking at roughly $1 trillion in 2007, advances declined 62% to $381 billion by March 2012.
But that trend quickly changed, with advances growing to nearly $500 billion primarily due to advances to the four largest members of the system, JPMorgan, Bank of America, Citigroup and Wells Fargo. In the last year, home loan advances to the Too-big-to-fails surged 158% — and the Inspector General is looking into the risks.
The most likely cause is the banks need the advances to met bank liquidity standards established by the international Basel Committee on Bank Supervision in December 2010.