8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 23, 2008

FEDERAL HOME LOAN BANK OF CHICAGO

(Exact name of registrant as specified in its charter)

Federally chartered corporation	000-51401	36-6001019
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)
111 East Wacker Drive Chicago, Illinois		60601
		(Zip Code)
(Address of principal executive offices)

Registrant's telephone number, including area code:

(312) 565-5700

Former name or former address, if changed since last report:

Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On April 23, 2008, the Federal Home Loan Bank of Chicago (the "Bank") sent an email letter to its members regarding recent decisions by its Board of Directors and management with respect to the Bank's purchase of mortgage loans under the Mortgage Partnership Finance^® Program. A copy of the email letter is attached to this report.

The information being furnished pursuant to Item 7.01 on this Current Report on Form 8-K and the information contained in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No. Description

99.1 Member email letter dated April 23, 2008

Signature(s)

      Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Federal Home Loan Bank of Chicago
Date: April 23, 2008	By: /s/ Peter E. Gutzmer
	Peter E. Gutzmer        Executive Vice President, General Counsel and Corporate Secretary

EX-99.1

EXHIBIT 99.1

[Text of message sent to members]

Subject Line: Important Announcement from Federal Home Loan Bank of Chicago

Effective immediately, the Board of Directors and management of the Federal Home Loan Bank of Chicago have determined that the Bank will no longer enter into new master commitments or renew existing master commitments to purchase mortgage loans from Participating Financial Institutions under the Mortgage Partnership Finance^® Program. The Bank will work closely with members that currently participate in the MPF Program to fund loans through July 31, 2008. Therefore, we will only enter into new delivery commitments under existing master commitments that fund no later than that date. At the same time, the Bank has renewed its efforts to implement an off-balance sheet funding alternative for the MPF Program that would allow members to resume delivering loans using the existing MPF customer interface, but would direct these loans to third-party investors. We will report back to you on our progress as soon as possible.

In an effort to reposition the Bank's balance sheet and enhance risk management practices in a volatile environment, the Bank has reached this difficult decision knowing that many members have benefited from this alternative to other mortgage purchase programs. While the credit quality of the MPF portfolio is unparalleled, the absence of a current alternative to funding MPF purchases on the FHLBC balance sheet has resulted in a disproportionate concentration of these loans. The hedging and funding costs for these loans, and the need to capitalize our loan portfolio while reducing voluntary stock, have had a significant adverse effect on our income, which ultimately disadvantages our members.

This decision does not impact FHLBC's commitment to provide programmatic and operational support in our role as MPF Provider for loans already purchased from our members and for the Federal Home Loan Banks participating in the MPF Program.

This decision and others that will follow decisively confront the issues before the Bank to accelerate the transformation of our balance sheet, the stabilization of our capital, and the improvement of our earnings. We intend to accomplish this while assuring that we provide our members with liquidity through our advances products that are priced to deliver much of the value of our funding advantage to you. You have the right to expect nothing less from us as a member of this Bank.

We will provide more information on developments at the Bank in thenext few days.

Best regards,

Matthew R. Feldman

Acting President

Federal Home Loan Bank of Chicago

This member letter contains forward-looking statements which are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "anticipates," "believes," "expects," "could," "plans," "estimates," "may," "should," "will," or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty, that actual results could differ materially from those expressed or implied in these forward-looking statements, and that actual events could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk factors set forth in the Bank's periodic filings with the Securities and Exchange Commission, which are available on the Bank's W eb site at www.fhlbc.com. The Bank assumes no obligation to update any forward-looking statements made in this letter. "Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.