PACB Letter to America's Community Bankers

April 6, 2006

Mr. Robert Davis
Executive Vice President
America's Community Bankers
900 Nineteenth Street, NW, Suite 400
Washington, DC 20006

VIA EMAIL

Dear Bob:

On behalf of PACB, I am writing to urge that ACB support changing FHFB regulations and permit involvement by FHLBank boards of directors in FHLBank director elections.

As FHLBanks strive to improve governance and become full SEC registrants, it is important that they have the option to get involved in director elections to help ensure that the skill mix of the elected board meets the many challenges facing today’s FHLBanks.

This regulatory action would not change the current statute requiring that the members nominate and elect FHLBank board members. Members would still nominate members to stand for election. Members would still vote under the same rules as provided by statute.

This change would allow members to consider additional information provided by a FHLBank’s on which candidate’s skill sets would be the most helpful. This would not be a big bank, small bank issue as many of the skills needed to fill out a board could come from the management of any size member institution (for example: housing, community/economic development, banking, accounting, policy experience, corporate finance, and risk management, among other things).

This regulatory action would not force a FHLBank board to get involved in an election. It would, however give them an option to act should they believe it could strengthen the governance of the FHLBank.

Please support this important regulatory change that would benefit ALL FHLBank member institutions.

Sincerely,

Frank A. Pinto
President/CEO

Cc: PACB Executive Committee
      Federal Home Loan Bank of Pittsburgh