The White House is expected to nominate Christy Goldsmith Romero as the chair of the Federal Deposit Insurance Corporation in the upcoming week, with her first hearing scheduled for July 8th. This move comes as a replacement for Martin Gruenberg, who is stepping down in light of a recent investigation that uncovered widespread sexual harassment and other misconduct within the top banking regulatory body.
Regulatory Agenda
The urgency to fill this role stems from the White House’s desire to advance President Joe Biden’s regulatory agenda, particularly surrounding major bank capital increases, in the lead-up to the upcoming U.S. presidential election. Despite the administration’s push for expediency, details regarding the timeline for hearings have not been explicitly disclosed by the White House or Democratic Senate Banking Committee chair Sherrod Brown.
In addition to Goldsmith Romero’s nomination, fellow Democratic Commissioner Kristin Johnson of the Commodity Futures Trading Commission is set to be nominated for the position of Assistant Secretary for Financial Institutions at the Treasury Department concurrently. This strategic move aims to streamline the nomination process for both key roles within the financial sector.
Timing Challenges
With the impending elections on the horizon, the window for confirmation hearings is limited. The Senate’s availability is constrained, with only half of July and the period leading up to September 2nd being conducive to confirmation proceedings. This puts pressure on expediting the nomination process in order to maintain operational continuity within the FDIC.
While formal announcements have not been made publicly, speculation from sources suggests that the White House could unveil Romero’s nomination imminently. The forthcoming confirmation hearings for both Goldsmith Romero and Johnson are crucial in ensuring smooth transitions within the FDIC and the Treasury Department, particularly as the regulatory landscape continues to evolve.
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