Walleri

Plaintiff Lisa Walleri (‘Walleri”) appeals from a judgment of the district court, entered March 10, 1994, dismissing her action, in which her husband Dan was a co-plaintiff, against her former employer, the Federal Home Loan Bank of Seattle (FHLBS), its former president James Faulstich (Fauls-tich), several other employees of FHLBS, the United States, and thé office of Thrift Supervision. This court has jurisdiction of the appeal under 28 U.S.C. § 1291 .

I. The Industry Background

Although superficially quite complex, the issues presented on appeal become clear when viewed in the context of the regulatory framework within which they arose. In substance, during the relevant period, there existed twelve regional federal home loan banks, including Walleri’s employer FHLBS, which served two separate functions. One was to provide credit for their member savings and loan associations. The other was to perform periodic examinations of those associations on behalf of the Federal Home Loan Bank Board (FHLBB), which was the regulatory agency overseeing them.

With respect to the first (private banking) function, the banks, though created by Congress, operated as private corporations. Each…