I worked at the FHLB of NY in the 80's. It's usually real estate. Unrestrained toxic home loans turned into AAA derivatives. How can this be, we gained 200 employees overnight when the S&L regulators were folded into the FHLB system.
After the bloodbath (liquidating the belly up S&L banks) the RTC was formed (huge money wash) we lost those 200 employees over night.
