Election Year Adds Political Twist at FHFB

By Sloan, Steven | American Banker, January 15, 2008 | Go to article overview

Election Year Adds Political Twist at FHFB


Sloan, Steven, American Banker


WASHINGTON -- As the race for the White House intensifies, so too does the politicking at the Federal Housing Finance Board, whose two Democratic directors are jockeying to become its next chairman.

Geoff Bacino, one of the Finance Board's four directors, has been the most overt in his political maneuvering. In letters, editorials, and speeches, he has opposed legislation reforming the government-sponsored enterprises - a position at odds with that of the agency's current chairman, Ronald Rosenfeld.

In his 18 months at the board Mr. Bacino, 45, has used his position to influence debates ranging from retained earnings to Federal Home Loan bank mergers.

His fellow Democratic director, Allan Mendelowitz, 64, is seen as more low-key, opting for long, private policy discussions with agency insiders instead of finding the political spotlight. Still, many observers say they have no doubt he is also eyeing the chairman's gavel.

"They are positioned to be the next chairman," said Alfred DelliBovi, the president and chief executive of the Federal Home Loan Bank of New York. "One of them will clearly be the next chairman if a Democrat is elected."

Who would emerge as the chairman may depend in part on which of the two is more closely aligned with the party's presidential nominee; currently the race is being dominated by Sens. Barack Obama, D-Ill., and Hillary Rodham Clinton, D-N.Y.

On paper, at least, Mr. Bacino has more affiliations with those candidates, as well as to the party's leadership in Congress. He met Senate Majority Leader Harry Reid, D-Nev., through a personal acquaintance years ago and was appointed by President Bill Clinton in 2000 to the board of the National Credit Union Administration.

Since 1999, Mr. Bacino has donated large sums to Democratic candidates, including $5,100 to Sen. Clinton's previous campaigns, according to the Federal Election Commission.

Alternatively, if Sen. Obama wins the nomination, Mr. Bacino could cite the Illinois roots he shares with the senator.

Mr. Mendelowitz has connections both to the Clinton administration and Capitol Hill. His former assistant, Chuck Jones, worked in President Clinton's personnel office and is now an aide to Sen. Tom Carper, D-Del., a member of the Senate Banking Committee. According to the FEC, Mr. Mendelowitz has donated $5,250 to Democratic causes and candidates since 2000, including $250 to Sen. Clinton.

Under its next chairman, the Finance Board is likely to decide whether to allow the Home Loan Bank System's first merger in 62 years. (The Home Loan banks of Chicago and Dallas are negotiating a tie-up.)

The agency also must manage a record volume of business; the credit crunch has sent institutions scrambling to the Home Loan banks in droves searching for cheap liquidity. In November the system said its advances had grown 28.6% from yearend, to $824 billion.

Observers said a smooth transition at the helm is crucial.

"With whatever leadership you've got at the Federal Housing Finance Board, what the market would be looking for and hope to see is some consistency over time in the core regulatory principles applied at the banks," said Jim Vogel, the head of fixed-income research at First Horizon National Corp. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Election Year Adds Political Twist at FHFB
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.