The White House is set to nominate Christy Goldsmith Romero as the Federal Deposit Insurance Corporation (FDIC) chair, according to a source familiar with the matter. Romero, who currently serves as a Democratic commissioner at the Commodity Futures Trading Commission, will be stepping into the role left vacant by Martin Gruenberg. Gruenberg resigned following a probe that uncovered instances of sexual harassment and other misconduct within the banking regulator’s ranks. The nomination is part of the White House’s efforts to advance President Joe Biden’s regulatory agenda, which includes significant bank capital hikes.
The nomination process is moving swiftly, with the first hearing scheduled for the week of July 8. The White House is eager to fill the position quickly, especially with the upcoming U.S. presidential election just six months away. While there is a sense of urgency in the air, specific details regarding the timeline for the nomination hearings have yet to be revealed. Senate Banking Committee chair Sherrod Brown, responsible for advancing FDIC nominees, has not provided any information on when the hearings will take place.
Alongside Romero’s nomination for the FDIC chair role, Kristin Johnson, the CFTC’s other Democratic commissioner, will be nominated for the position of Assistant Secretary for Financial Institutions at the Treasury Department. This move signifies a broader reshuffling within regulatory bodies and underscores the White House’s commitment to implementing its financial policy priorities.
Political Landscape
With the upcoming election on the horizon, the timing of these nominations is crucial. The Senate’s limited session schedule in July and the extended break from August to September poses a challenge in securing timely confirmations. The pressure is on to finalize the nominations before the November general election, as Senators facing re-election prefer to be in their home states campaigning rather than tied up in Washington.
Anticipated Announcement
While official announcements have yet to be made, media outlets have speculated on the potential timing of the White House’s declaration. Reports suggest that an announcement regarding Romero’s nomination could come as early as Thursday, signaling the beginning of a new chapter in the leadership of the FDIC. However, the exact details and confirmation process are still pending further communication from the relevant parties.
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