FHLBank Public Interest Directors Extended

The Federal Housing Finance Board is allowing the 25 public interest directors still serving on the boards of the Federal Home Loan Banks to serve another 12 months.The Finance Board approved the appointments at a Dec. 22 meeting after coming under pressure from Democrats on the House Financial Services Committee to act quickly. But there are still 57 PID vacancies, and Chairman Ronald Rosenfeld instructed his staff to come up with a plan for the appointment of additional directors. For the past three years, the Bush administration has blocked the appointments of these outside directors while it pressured Congress to pass legislation to strengthen supervision of the housing government-sponsored enterprises. It appears that Mr. Rosenfeld has finally gotten clearance from the White House to make the appointments after Democrats threatened to hold a committee hearing on the FHFB's failure to meet its statutory duty. Diane Casey-Landry, president of America's Community Bankers, noted that the outside directors play an important role in the governance of the FHLBanks. "We are encouraged that the Finance Board filled one-third of the public interest director vacancies, and will consider ways in the near future to fill the remaining vacancies," she said.