The Federal Home Loan Bank of Seattle has picked former thrift regulator James E. Gilleran to lead the troubled government-sponsored enterprise.Mr. Gilleran, who served as director of the Office of Thrift Supervision for four years, will start June 1. He left the OTS in late April. The Seattle bank has $260 million in unrealized losses on its balance sheet and anticipates that it could lose money over the next few years. It recently suspended all dividend payments on its stock and fired two directors whose depositories engaged in questionable FHLBank stock sales. Mr. Gilleran, though, is hopeful. "While the bank is facing significant challenges, it appears to be making good progress toward improving its regulatory and financial position," he said. Mr. Gilleran replaces interim president James Faulstich, who came out of retirement to help the Seattle bank devise a new capital and rescue plan. Mr. Faulstich replaced Norman Rice, a former Seattle mayor, who was ousted by the board earlier this year.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry