White House to Nominate Goldsmith Romero for FDIC Chair

The White House will soon nominate Christy Goldsmith Romero, a Democratic commissioner at the Commodity Futures Trading Commission (CFTC), as the new chair of the Federal Deposit Insurance Corporation (FDIC).

According to a source familiar with the matter, this move comes as the administration targets a hearing for her nomination in the week of July 8. 

Goldsmith Romero will replace Martin Gruenberg, who is stepping down following a probe that revealed widespread misconduct at the FDIC.

The urgency in filling the FDIC chair role is driven by President Joe Biden’s aim to advance his regulatory agenda, including significant bank capital increases, with just six months remaining before the U.S. presidential election.

Kristin Johnson, the other Democratic commissioner at the CFTC, will be nominated for Assistant Secretary for Financial Institutions at the Treasury Department.

The timing for Senate hearings remains uncertain, although the administration and Senate Banking Committee chair Sherrod Brown are pushing to expedite the process. Gruenberg will stay on until the new chair is confirmed, ensuring Democratic control of the FDIC until at least January next year.

With the Senate’s limited session schedule and the upcoming November general election, time is constrained to confirm these nominations.For more information, read the full article on Reuters.