Magazine article American Banker

DelliBovi: Treasury Plan Unapproved by White House

Magazine article American Banker

DelliBovi: Treasury Plan Unapproved by White House

Article excerpt

A top Home Loan Bank executive said Friday that the Treasury Department is pursuing an aggressive disclosure policy without clear White House approval and that the industry is lobbying Bush administration officials to rein in the agency.

The Treasury's plan would require the 12 Home Loan banks to register their capital stock with the Securities and Exchange Commission. The majority of the banks complain that it would add an unnecessary layer of regulation and could increase their cost of funds.

Alfred A. DelliBovi, the president of the Federal Home Loan Bank of New York and an official in past Republican administrations, said there is no evidence that Treasury Under Secretary for Domestic Finance Peter Fisher had ever fully vetted the plan with the White House policymakers.

"We are trying to find out how and where in this administration this policy was arrived at," Mr. DelliBovi said in an interview. "The White House has structured policymaking processes, and we cannot find any indication that this decision was ever considered in any of those processes. If we could, we could understand it and try and work with it.

"Maybe it means this is freelance policymaking. If there is no record of how a decision was reached, the chances are that all of the implications were not fully considered," he said.

A Treasury spokeswoman dismissed the claims. She pointed out that in July, Mr. Fisher testified before Congress on the matter of disclosure by government-sponsored enterprises.

"His testimony included the following statement: 'The administration believes that all government-sponsored enterprises should comply with the same corporate disclosure requirements of the Securities Exchange Act of 1934, as interpreted and applied by the Securities and Exchange Commission,' " she said.

The spokeswoman noted that such testimony is always cleared by administration officials before it is delivered. …

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