WASHINGTON -- The Federal Housing Finance Board has unanimously adopted an interim final rule establishing procedures for the selection of appointed directors to the boards of the Federal Home Loan Banks.
Under the new rule, the banks will identify potential directors and send a list to the board for consideration, including an eligibility form. The FHFB can deny appointments and seek additional nominees.
Finance Board Chairman Ronald Rosenfeld stated, "Beyond the community interest directors whose qualifications are determined by statute, the public interest directors that the Finance Board appoints should be persons who have the background and experience appropriate to providing guidance to an entity as large and complex as a Federal Home Loan Bank. The process of initially identifying such persons and ascertaining their willingness to serve is best executed by each individual Bank."
The FHFB is accepting comments on the interim rule for 30 days after publication in the Federal Register; the rule was effective upon publication.
FHFB Director Geoff Bacino commented, "It takes the political patronage out of it. It takes the personal friendships out of it. It continues the well-rounded directors we've had in the past."
The credit union trades have been working to get credit union representation on the FHLB boards, but Bacino said he does not see how credit union officials would be eligible for these spots.