Is the FHLB System Working as Expected?

The video discusses the Federal Home Loan Bank (FHLB) system, highlighting its role as a crucial financial backstop. It explores the perception of FHLB as a lender of second to last resort, the risks involved, and the questions raised about its operations. The discussion also covers the evolution of FHLB's role, its exposure to new financial areas, and the regulatory considerations being examined to potentially tighten its focus.

What is meant by the term 'lender of second to last resort' in the context of the Federal Home Loan Banks?

What changes or regulations are being considered for the Federal Home Loan Banks?