House Members Ask White House to Nominate State Supervisor to FDIC Board
A bipartisan group of House members raised alarm at the potential nominees to the FDIC Board, noting that there is no indication so far of a nominee with state regulatory experience as required by law.
The letter, signed by 15 Congressional Representatives, highlighted the critical role of state supervisors in the nation's dual-banking system and emphasized that at least one FDIC board member must have state bank supervisory experience.
"As you know, the federal government and the states share responsibility for overseeing of the nation's dual banking system, and the FDIC plays a considerable role in that process," reads the letter. "State banking regulators also have many significant responsibilities in our nation's dual banking regulatory structure, as nearly 80 percent of our nation's banks are state-chartered."
"Recent news reports have indicated that the administration is considering two potential nominees to fill the vacancies on the FDIC board. While we certainly acknowledge that these individuals have expertise in federal banking regulation... we are concerned that there still would not be an independent director with state bank regulatory experience on the FDIC Board as required by law."
CSBS has strongly advocated for the White House to nominate to the FDIC Board a state bank supervisor. In December 2018, CSBS President and CEO John Ryan wrote about the legal requirement. In early January, CSBS Senior Vice and Deputy General President Margaret Liu explained the intent of Congress when amending the FDI Act to include a state bank supervisor on the board. And, earlier this week, CSBS also sent a letter to the White House.