Federal Home Loan Bank of Boston takes page from public companies…

Friday was one of those rare days when markets are closed, but the SEC is open for filings. That led to lots of interesting filings late Thursday and also on Friday. But one of the ones that jumped out at me wasn’t for a public company. Instead, it was this 10-K from the Federal Home Loan Bank of Boston — filed at 5:29 p.m. on Friday that caught my eye.

It’s admittedly been awhile — like an Economics class at Brandeis — since I’ve given any thought to the Federal Home Loan Banking System, which is comprised of 12 banks. But as it turns out 11 of the 12 banks filed their annual reports in March — Des Moines was the earliest on March 13 — except for Boston, which waited until Friday. Back on March 31, the Boston bank filed this notice to say its 10-K would be late because “the Bank has not been able to complete its assessment for other-than-temporary-impairment (OTTI) of certain of its private-label mortgage-backed securities (MBS) and consequently has been unable to finalize its audited financial statements.”

As I started poking around, I came across this article in the Boston Globe that talked about some pretty significant problems at the Bank and also noted that its longtime president, Michael Jessee, had been pressured to resign by the bank’s board.

So perhaps it shouldn’t be all that surprising that the 10-K had this severance agreement for Jessee. According to the agreement, Jessee will continue to collect his regular salary of $630K through Oct. 2010, even though he is officially stepping down on April 30. The bank will also pay for a new computer “of his choice” and get continued health benefits paid by the Bank through age 65. There’s also an unspecified bonus.

Now, granted, this isn’t the same type of gold-plated deal that some banking executives receive. But given what appear to be particularly serious problems at this Home Loan Bank, it’s not exactly half bad.