Treasury Chief Cleared of Conflict-Rule Breach
Federal investigators have concluded that Treasury Secretary John W. Snow did not violate conflict-of-interest rules in inadvertently investing in the bonds of two government-sponsored mortgage giants.
Snow was a top executive at railroad company CSX Corp. before he became Treasury secretary in February 2003.
As he prepared to move into the federal post, Snow has indicated, he instructed his advisor to invest in Treasury bonds to avoid any conflict of interest. But in 2003 Snow’s advisor bought $10.87 million in bonds held by government-sponsored enterprises of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
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