FHLBank Public Directors' Terms Extended

The Federal Housing Finance Board has extended the terms of the public interest directors that serve on the boards of the 12 Federal Home Loan Banks for up to six months.The three-year terms of the existing 82 PIDs were due to expire Dec. 31, so Ronald Rosenfeld, the new Finance Board chairman, opted to extend their tenure while the Bush administration decides how its wants to handle the issue. The administration stopped appointing PIDs to the boards of Fannie Mae and Freddie Mac last year. "The Finance Board has determined that retention of certain directors beyond the expiration of their terms will advance the Securities and Exchange Commission registration process," an FHFB resolution says. The FHLBanks are in the process of registering their stock with the SEC. John von Seggern, president of the Council of Federal Home Loan Banks, welcomed the Finance Board's action, which maintains continuity on the boards. "I think they made a smart move," he said. Many FHLBanks would have lost their chairman or vice chairman if the Finance Board had not acted, he pointed out.