Bruce A. Morrison, chairman of the Federal Housing Finance Board, on Tuesday countered criticism leveled at legislation designed to overhaul the Federal Home Loan Bank System.

"There is nothing of importance to a more effective, mission-focused FHL Bank System which is omitted (from the bill), and nothing included which is not an improvement," Mr. Morrison wrote Senate Banking Committee Chairman Alfonse M. D'Amato.

Mr. Morrison was reacting to a letter sent to Sen. D'Amato by Treasury Secretary Robert E. Rubin, who blasted plans to expand the types of investments Home Loan banks could make.

The Home Loan bank provisions would amend S 1405, the regulatory relief bill pending in the Senate. The Senate Banking Committee is scheduled to vote on the legislation Thursday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.