EXHIBIT 12.1

COMPUTATION OF EARNINGS TO FIXED CHARGES



|                                                                                         |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|---------------------------------------------------------------------------------------- |  | ---------------------------- | --------- | - | ---- | - | --------- |  | ---- | --------- | ---- | - | --------- |  | - | ---------
|                                                                                         |  | For Years Ended December 31,
|Computation of Earnings to Fixed Charges                                                 |  | 2008(1)                      |           |   | 2007 |   | 2006      |  | 2005 |           | 2004
|(in thousands, except ratios)                                                            |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|Earnings                                                                                 |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|(Loss) Income before assessments and cumulative effect of change in accounting principle |  | $                            | (199,364  | ) |      | $ | 96,257    |  | $    | 35,087    |      | $ | 2,512     |  | $ | 112,591  
|Fixed charges                                                                            |  |                              | 2,068,518 |   |      |   | 2,835,663 |  |      | 2,456,559 |      |   | 1,865,428 |  |   | 1,518,087
|                                                                                         |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|Earnings available for fixed charges                                                     |  | $                            | 1,869,154 |   |      | $ | 2,931,920 |  | $    | 2,491,646 |      | $ | 1,867,940 |  | $ | 1,630,678
|Fixed Charges                                                                            |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|Interest expense on consolidated obligations                                             |  | $                            | 2,042,726 |   |      | $ | 2,786,847 |  | $    | 2,413,097 |      | $ | 1,822,266 |  | $ | 1,502,956
|Interest expense on deposits and borrowings                                              |  |                              | 25,074    |   |      |   | 48,267    |  |      | 42,876    |      |   | 41,863    |  |   | 14,387   
|Interest portion of rental expense                                                       |  |                              | 718       |   |      |   | 549       |  |      | 586       |      |   | 1,299     |  |   | 764      
|                                                                                         |  |                              |           |   |      |   |           |  |      |           |      |   |           |  |   |          
|Fixed charges                                                                            |  | $                            | 2,068,518 |   |      | $ | 2,835,663 |  | $    | 2,456,559 |      | $ | 1,865,428 |  | $ | 1,518,107
|Ratio of earnings to fixed charges(1)                                                    |  |                              |           |   |      |   | 1.03      |  |      | 1.01      |      |   | 1.00      |  |   | 1.07     



|(1) | Earnings were inadequate to cover fixed charges by approximately
$199.4 million for the year ended December 31, 2008.
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