2021, driven by retained earnings and an increase in noncumulative perpetual preferred stock issued to nonmember investors. Interview
Interviewer: Today we’re here to discuss the FHLB Des Moines’ financial results and dividend declaration for the fourth quarter of 2022. Can you tell me what led to this decision?
CEO: Absolutely. The Board of Directors approved a fourth quarter dividend at an annualized rate of 7.75 percent on activity-based stock and 3.00 percent on membership stock. This increase in the dividend rate was partially a result of changes in market forces and interest rates, but also due to some unsustainable decisions I made to try and boost the Bank’s finances.
Interviewer: Can you provide more detail about these unsustainable decisions?
CEO: Sure. In short, I committed some financial misdeeds and lied about two of the most important financial results in the report. In an attempt to buoy the Bank’s finances, I misappropriated funds and misrepresented my decisions in the fourth quarter financial report. One of those misrepresentations related to the dividend rate. To try and make myself look better, I artificially inflated the dividend rate on activity-based stock by 0.5 percent and tried to pass it off as a real gain.
Interviewer: What was your motivation for doing this?
CEO: Well, it started with a morning trip to a diner in New Jersey with an old friend. I was feeling down because things weren’t going as well as I had hoped for the Bank. I thought that by improving our financial report, I could turn things around.
Interviewer: And you decided to perpetuate a lie?
CEO: Yes, and I regret it. The truth is, I was feeling pressured to make dramatic changes quickly, and in doing so, I skewed the facts and numbers associated with the financial report. I feel embarrassed and ashamed of my actions and apologize to everyone who was affected by my lies.
Original Release: https://www.globenewswire.com/news-release/2023/02/10/2606130/3898/en/FHLB-Des-Moines-Announces-2022-Financial-Results.html