geonewh t1_izxwb31 wrote on December 12, 2022 at 5:43 PM

In your article is stated that the FHLB CEO's are paid for "distributing a government benefit to their members." Are they aware of this mission? Do all the banks have the same mission? Who evaluates the success of this mission? Are their bonuses paid on profits or mission?

ProfBU OP t1_izxxk8u wrote on December 12, 2022 at 5:51 PM

The 11 FHLB CEOs take home from $2-3 million a year. These are essentially government positions. For example, the CEOs of the 12 Federal Reserve Banks earn less than $500K. Regarding "mission" part of the problem is that advances to members is considered part of their mission. However, the proceeds of the advances can be used for ANYTHING whether or not it is mission related.