The Federal Home Loan Bank System faces additional risks due to the development of new products such as direct mortgage purchase programs. Responding to concern about the methods used for admin. decisionmaking, and the ability of the Fed. Housing Finance Board (FHFB) to fulfill its critical mission to regulate the safety and soundness of the System, the GAO was asked to: (1) compare the FHFB chair's admin. authorities with those of other financial regulators and discuss the basis for that authority; (2) assess FHFB's compliance with selected statutes and regulations. in connection with an Aug. 2002 reduction-in-force carried out as part of an agency reorganization; and (3) assess FHFB's progress in enhancing its FHLBank safety and soundness exam'n. program.
The application of technology to derivatives trading has resulted in the development and use of electronic systems that are changing the way derivatives are traded. What is the appropriate regulation of electronic trading systems for exchange-traded futures (ETF) and OTC derivatives? This report answers these questions: how is technology being used in the ETF market, and what concerns does this use raise under the CEA?; how is technology being used in the OTC derivatives market, and what concerns does this use raise under the CEA?; and what alternatives have been suggested for addressing the concerns by the use of technology in the derivatives markets?