29 FHLBank Directors to Be Named Soon

Federal Housing Finance Board Chairman Alicia Castañeda says she intends to appoint 29 public-interest directors to the boards of the 12 Federal Home Loan Banks by the end of the year.The new chairman told reporters that it is the Finance Board's responsibility to select the public-interest directors and that she expects to complete the process soon. Under previous chairmen, the appointment process become very contentious and politicized. At a board meeting on Oct. 29, Finance Board directors Franz Leichter and Allan Mendelowitz proposed a resolution to create an appointment process that is open and fair -- including a public solicitation for nominees. Chairman Castañeda said the proposal is "thought-provoking." But as the new chairman, she said she wants to conduct the appointment process from start to finish. "I feel the need to spend some more time to determine what has worked and what needs to be changed," she said. The proposed resolution was defeated on a 2-2 vote.