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GGD-81-82 1 (1981-06-18)

handle is hein.gao/gaobabcej0001 and id is 1 raw text is: 

                  COMPTROLLER GENERAL OF T'HE UNITED STATES
                          WASHINGTON D.C. 20548


B-203557                                               JUNE 18, 1981

                                       6COific approval

The Honorable John Paul Hammerschmidt

House of Representatives                                    11182  1
                                                            115827
Dear Mr. Hammerschmidt:

     SUBJECT: Aticipated Benefits of Moving the Federal
               Home Loan Bank of Little Rock, Arkansas,
               to Dallas, Texas, are Outweighed by Other
               Considerations)(GGD-81-82)

     On March 19, 1981, you asked that we review several issues
related to a proposal to move the Federal Home Loan Bank of
Little Rock, Arkansas, to the Dallas, Texas, metropolitan area.
You asked us to assess the performance of the Little Rock Bank
as compared to the 11 other Federal Home Loan Banks, determine
how many of the bank's employees would move and how any loss
of employees would impact the bank's performance, and analyze
any other aspects of the move as time permitted.

     Our analyses show (1) the Little Rock Bank is a sound,
stable institution and compares favorably to similar size banks,
(2) most of the key employees would consider relocating to
Dallas, Texas, (3) the move would be costly, and (4) the savings
and loan associations do not clearly favor or oppose the move.
In our opinion, the cost of the proposed move and the indecisive-
ness of the savings and loan associations outweigh the sole prin-
cipal advantage of improved accessibility. Therefore, we believe
the Federal Home Loan Bank Board (FHLBB) should not approve the
proposed move of the Little Rock Bank to Dallas, Texas.

     The Federal Home Loan Bank System consists of 12 Federal
Home Loan Banks and the FHLBB in Washington, D.C. Each bank
is a separate corporate entity owned by its member savings
and loan associations. The Little Rock Bank was established
in 1932, and has 615 member associations located in Arkansas,
Louisiana, Mississippi, New Mexico, and Texas. It ranks sixth
in asset size among the 12 Federal Home Loan Banks.

     Although the Federal Home Loan Banks are independent cor-
porate entities, the FHLBB must approve bank relocations. Since
1933, seven banks have been moved.







                          6?773 7                      (233074)

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