FHLB Chairman Charles Bowsher has resigned, saying that under the new rules, he would be unable in good conscience to vouch for the accuracy of the various FHLB banks financial statements following the relaxation of rules by the Federal Accounting Standards Board (FASB) on illiquid assets, and he talked with Jonathan Weil about it:

I was not comfortable as an audit-committee member in signing off on the financial statements, after I became aware of the standards and processes for valuing the mortgage-backed securities

An honest banker, who knew?

A broken, corrupt, and dishonest system….everyone knows that.