FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury Secretary Paul O'Neill today announced that Sheila C. Bair, Assistant Secretary of the Treasury for Financial Institutions, plans to leave government service in mid-June.

Bair plans to join the University of Massachusetts-Amherst's Center for Public Policy and Administration as Professor of Practice in Public Policy. In this capacity she will teach and conduct research on financial services issues, including the regulation of insurance and the expansion of access to financial services in low- and moderate-income areas.

"Sheila has done an outstanding job and has made exceptional contributions to the Treasury and to financial institutions nationwide," said Secretary O'Neill. "She brought invaluable expertise to her position, having worked for more than 20 years in both government service and with financial markets. With that experience and perspective, Sheila has played an important role in shaping many issues within the Administration and on Capitol Hill.

"She cares deeply about the need for a greater focus on financial education in U.S. schools and among low- and moderate income people who are 'unbanked.' Sheila has spearheaded efforts to improve the financial knowledge and skills of Americans of all ages, most notably helping to establish the Department's new Office of Financial Education. She also oversaw implementation of the First Accounts program, which recently awarded grants to 15 proposals that will assist more than 35,000 unbanked people.

"Following the tragic terrorist attacks of September 11, 2001, Sheila has worked tirelessly with Capitol Hill to gain consensus on much-needed legislation addressing terrorism risk insurance. She understands and effectively communicates the importance of enacting such a measure that will help keep our economic recovery on track.

"Sheila has played an integral part in the development of the USA PATRIOT Act regulations to engage financial institutions in the fight against terrorist financing and money-laundering. As Chairman of the Financial and Banking Information Infrastructure Committee of the President's Critical Infrastructure Protection Board, she has been a key Administration voice as we work to strengthen our financial services infrastructure protection and keep U.S. banking and financial systems safe from potential terrorist attacks. This effort is critical to protecting our homeland and our economy.

"Sheila's impact will be felt as we at Treasury continue work she started to encourage mortgage lenders to establish a code of best practices to address predatory lending, and to improve deposit insurance, regulatory coordination, implementation of the Gramm-Leach-Bliley Act, remittances, privacy issues and consumer protection.

"In short, both President Bush and I are grateful for her public service, as should be all Americans."