Former federal thrift regulator James Gilleran is receiving a $525,000 annual salary as the new president and chief executive of the Seattle Federal Home Loan Bank, according to an initial registration statement filed by the bank with the Securities and Exchange Commission.The former Office of Thrift Supervision director became the new president and CEO of the troubled bank on June 1, replacing Norman Rice who resigned on March 15. Mr. Rice received a $444,700 salary in 2004 and was paid an $80,600 bonus, despite a 42% drop in bank earnings from 2003 to $83 million in 2004. In 2003, Mr. Rice, a former mayor of Seattle, received a $211,000 bonus. On Dec 10, the Federal Housing Finance Board placed the Seattle bank under a supervisory agreement due to declining profitability and problems with its mortgage purchase program. The FHLBank is currently exiting the mortgage purchase business and focusing on advance lending as its primary business activity. Mr. Gilleran is credited with turning around the troubled Bank of San Francisco when he served as its president and chief executive from 1994 to 2000.

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