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A hearing to discuss the General Accounting Office (GAO) audit of the Federal Housing Finance Board, which is the safety & soundness & mission regulator of the Federal Home Loan Bank. Witnesses: Richard S. Carnell, Assist. Sec. of the Treasury for Financial Institutions; Nancy R. Kingsbury, Acting Assistant Comptroller General, General Government Programs, GAO, accompanied by Thomas J. McCool, Dir., Financial Institutions & Markets; & Bruce A. Morrison, Chairman, Federal Housing Finance Board. Also includes a prepared statement submitted by Federal Housing Finance Board Director J. Timothy O'Neill.