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WASHINGTON, D.C. — America’s Community Bankers, the American League of Financial Institutions and 21 state trade associations petitioned Congress today to extend the statutory deadline for adoption of a regulation setting the parameters for a new capital structure for the Federal Home Loan Bank System.

The Gramm-Leach-Bliley Act requires the Federal Housing Finance Board to issue regulations prescribing uniform capital standards for the FHLBanks by Nov. 12, 2000. ACB and the state organizations requested an extension for up to one year, to Nov. 12, 2001.

Publication of the proposed capital rule in the Federal Register did not occur until July 13. Following the close of the 90-day comment period, the FHFB would have just one month to review comments and develop a final rule, ACB said.

“Development of the new capital structure has proven to be a very complicated process,” ACB said. ACB called for capital rules to be implemented “as soon as practicable,” but said “implementing rules before their ramifications can be understood and a sound system developed will serve none of us well.”

The process has been complicated by the FHFB board’s lack of a quorum to act on or finalize rules. Even if recess appointments are made to fill vacancies and a quorum is achieved, ACB said new FHFB board members will need time to fully understand the full range of capital issues.

ACB directed its request for an extension to the leadership of the Senate and House Banking Committees and to key members of the subcommittees with jurisdiction over FHFB issues.

A copy of the letter is linked.