I'm sorry, what if the credit risk tells us the bank is going to fail? Here's why I want to. Here's my concern. I'll lay it out for you. Make an observation and have you respond, When the Federal Home Loan bank makes an advance to a failing bank, it secures a priority claim on high quality assets pledged as collateral. In doing so, it reduces the pool of assets available to the FDIC as receiver and can potentially increase losses to the deposit insurance fund. (02:45–02:55)
CLAIM
Asserts that the Federal Home Loan Bank secures a priority claim on high-quality assets when advancing to failing banks.
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