FDIC Chief Sheila Bair Received BofA Mortgages While Working on BofA Bailout

Monday, January 25, 2010

Sheila Bair, head of the Federal Deposit Insurance Corporation, received two home loans worth more than $1 million from Bank of America last summer while helping oversee the bank’s federal bailout, raising questions of conflict of interest. The discovery was made by the Huffington Post Investigative Fund, whose story seemed to prompt Bair to ask retroactively for an ethics rule exemption from the FDIC; she was granted the waiver just last week. FDIC rule prohibits employees from participating in “any particular matter” involving banks that they borrow from.

In response to the Huffington story, FDIC officials have insisted no rules were violated by Bair, voted the most powerful American woman in 2009 by Forbes. Her agency also has insisted she received no preferential treatment for either BofA loan, and is paying interest rates at or above the national average.
-Noel Brinkerhoff
FDIC Chief Got Bank of America Loans While Working On Its Rescue (By Keith Epstein and David Heath, Huffington Post Investigative Fund)
Sheila Blair (AllGov)


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