CUNA Presses FHFB To Include CU Reps On Boards

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CUNA is pressing the Federal Housing Finance Board (FHFB) to ensure that the board of directors of each Federal Home Loan Bank includes a reasonable representation of credit unions. The trade group has sent a comment letter in response to an FHFB proposal in which it notes that credit unions make up approximately 15% of the total number of financial institutions that are members of the 12 banks, yet FHLB's current election rules make it difficult for credit unions to be represented on these boards.

In the comment letter, written by Senior Assistant General Counsel Jeff Bloch, he notes, "Credit unions, as well as other groups that comprise a minority of the bank's membership, deserve representation on these boards. This goal can be achieved if there is a change in the federal law to require each bank to have a limited number of directors that are either elected, or appointed by the FHFB, from bank member institutions that, as a group, hold a minority of the bank stock. This could include a change to eliminate the requirement that directors appointed by the FHFB cannot be employed by or serve on the board of a bank member institution while they are serving on the board of the bank in their district."

CUNA said that is supports the FHFB's recent proposal intended to enhance the level of relevant skills and experience embraced by FHLB board members. (c) 2006 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.

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