Our take on the first two days of FHFA’s FHLB “listening session” last week is that battle lines are shaping up much as we expected with the exception of a couple of powerful groups with new ideas about how the System could be put to better use for themselves and/or the public interest.  As noted when these sessions were announced, our strategic thinking centers around what FHFA can do on its own under current law or how far it decides to stretch it.  Key questions and our forecasts for next steps follow.