The majority of people have little idea of what the Federal Home Loan Bank is, or how it operates. So when Dana Yealy, Managing Director, General Counsel and Corporate Secretary for the Federal Home Loan Bank of Pittsburgh explained it to the audience at the most recent African American Chamber of Commerce PowerBreakfast, it was enlightening.
But when he told them what the bank was doing to promote diversity—through its lending, through its sourcing and through its direct hiring—it was inspiring.
“We have concerns about (Pittsburgh’s) lack of diversity, and the effect it has on us and on the region,” he said.
The FHLB is not a government agency. It is a collective of private member banks which range in assets from a $82 million to more than $2 trillion that lend money for public purposes. One-third of all the world’s current debt is held in FHLB notes.
Because of its size—the system is actually broken into 11 district across the country—and because all of member banks are responsible for the loans any single member makes, the FHLB can and does make loans that federal overseers would not allow strictly private S&Ls or Banks to make.