"Vegas Whale and Savvy Financiers Tap Billions from US Housing Funds"

Financiers, including Texas tycoon Andy Beal, are tapping into the US Federal Home Loan Banks (FHLBs) for billions of dollars, despite being disconnected from housing. Many banks and insurance companies are using their FHLB memberships to manage their balance sheets, while some have operated more like hedge funds or made loans to celebrities. Critics argue that this highlights the unaddressed problems with the $1.4 trillion FHLB system, which has failed to adapt to changes in the mortgage market. Lawmakers and regulators are now calling for tighter rules and greater scrutiny of FHLB membership to ensure it aligns with the goal of promoting economical housing finance.