Bank Board’s McKenna Won’t Get New Term
The chairman of the Federal Home Loan Bank of San Francisco has not been reappointed to the top job overseeing 221 thrifts in California, Arizona and Nevada.
William McKenna, 74, said Thursday that he had wanted to serve as chairman for another year, but he understood the decision not to reappoint him. For several years McKenna has criticized how Washington officials have handled the nationwide savings and loan crisis.
“I had been putting whatever obstacles I could in front of the bank board on several issues, and he has the right to someone who supports his policies,” McKenna said of Federal Home Loan Bank Board Chairman M. Danny Wall, who made the decision not to reappoint him.
Wall was not available for comment.
While chairman of the San Francisco bank since 1982, McKenna, a Los Angeles lawyer, had disagreed with the Washington-based board on several issues. Last week he called for the liquidation of the Federal Savings and Loan Insurance Corp., which insures S&L; deposits up to $100,000 and is governed by the bank board.
McKenna is opposed to the FSLIC practice of using notes or guarantees instead of cash to bail out insolvent thrifts. He also is reportedly concerned with the year-end rush to bail out dozens of insolvent thrifts without Congressional approval, which could lead to a drain on taxpayers for years.
McKenna will remain a director of the San Francisco bank during the remainder of his four-year term.