The White House is considering new nominees to replace the outgoing chairman of the Federal Deposit Insurance Corporation (FDIC), with Sandra Thompson and Christy Romero among the potential candidates. Thompson, the director of the Federal Housing Finance Agency, and Romero, a commissioner on the Commodities Futures Trading Commission, have both been involved in promoting President Biden’s regulatory agenda and have secured Senate confirmation for their current roles. Other names under discussion include Adrienne Harris, the top financial regulator in New York, and Graham Steele, a former adviser to Senator Sherrod Brown who now leads financial regulation at the Treasury Department.
A shortlist of candidates has not yet been finalized, and the White House is looking to move quickly with a nomination process to schedule a hearing before Senator Brown goes into campaign mode for reelection in Ohio. The current FDIC chairman, Martin Gruenberg, has resigned following a report of widespread instances of sexual harassment and intimidation at the agency during his tenure. Gruenberg will remain in the role until a successor is named. Multiple employees have reached out to congressional and White House offices, leading to calls for a culture shift at the agency.
The urgency to nominate a new FDIC chairman is driven by the need for immediate change and to ensure a smoothly functioning regulatory body for the country’s banking system. The term for the FDIC chairman is five years, which means a nominee appointed by Biden could continue regulating the country’s banks well beyond the November election. However, political stalemate and partisan politics have played a significant role in these appointments, with the ousting of former FDIC chair Jelena McWilliams by Biden appointees one year into Biden’s term.
The nomination of a new FDIC chairman late in an administration’s term is rare, but necessary in this case due to the circumstances surrounding Gruenberg’s resignation and the need for a cultural shift at the agency. The process of selecting a new chairman is fast-moving but still in its early stages, with other potential candidates possibly being added to the mix. Biden administration officials are looking to find the right person to lead the FDIC and ensure its effective functioning in regulating the country’s banking system. The focus is on finding a candidate who can navigate the challenges faced by the agency and work towards restoring trust and confidence in its operations.
