In Brief: Finance Board Member Gets Walking Papers

Lawrence Costiglio, a member of the Federal Housing Finance Board, has been told by the White House that his tenure on the board will end March 23.

The Finance Board regulates the $325 billion-asset Federal Home Loan Bank System, a government-sponsored enterprise charged with assisting housing by making loans to mortgage-lending institutions.

The development comes as Finance Board Chairman Bruce Morrison, who has clashed with Mr. Costiglio and another board member, is planning a comprehensive board review of Federal Home Loan Bank System investment policies.

Although Mr. Costiglio is a Democrat, "he has fought the administration on practically every issue," said White House spokesman Barry Toiv. Mr. Costiglio was nominated by President Bush.

Mr. Costiglio received his walking papers in a terse letter this week from White House Personnel Director Bob Nash, saying that "the President has directed me to inform you that your service on the Board of Directors of the Federal Housing Finance Board has been terminated at the close of business March 23, 1998."

Costiglio couldn't be reached for comment. According to a Finance Board spokesman, he currently makes $118,400 a year as board member.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER