Federal Home Loan Bank Of New York Directors Elected

DOW JONES NEWSWIRES 
 

The Federal Home Loan Bank of New York's board of directors re-elected Chairman Michael M. Horn to a two-year term and elected Vice Chairman Jose Ramon Gonzalez to a four-year term as member director, both starting as of Friday.

Created by Congress in 1932 to support the housing market, the 12 regional home-loan banks are cooperatives owned by more than 8,000 banks, thrifts, credit unions and insurers.

Financial troubles at some of the Federal Home Loan Banks this year have raised questions about how well directors of these institutions are supervising their executives, leading directors to crack down in some cases.

Horn, chairman since May 2008, earlier this year was elected to a four-year term as independent director. A partner in the McCarter & English LLP law firm since 1990, he also has served as New Jersey's banking commissioner and treasurer, among other positions.

Gonzalez began his current board term two years ago and has been vice chairman since June 2008. He was Santander BanCorp's (SBP) president and chief executive from October 2002 until 2008 and has since been a director there.

Some of the home-loan banks invested heavily in private-label mortgage securities during the housing boom, partly to increase their interest income. However, the banks have repeatedly had to write down the value of such securities as mortgage defaults and foreclosures surged, leading some of them to post losses.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];