Korsmo Resigns FHFB Seat Following Questions
John Korsmo, the chairman of the Federal Housing Finance Board, resigned his post amidst the continuing controversy over his involvement in political fundraising.
Federal investigators are probing Korsmo's role in a 2002 political fundraiser for a Republican House candidate that was attended by several presidents of the Federal Home Loan Banks, which are overseen by the finance board. Korsmo was notified by federal prosecutors earlier this year that he and his wife were being investigated for obstruction of justice in a possible cover-up of campaign finance violations in connection with their political fundraising.
The finance board regulates the 12 regional Home Loan Banks, which provides low-cost mortgage financing to more than 6,000 financial institutions, including more than 800 CUs.