President Biden has nominated Christy Goldsmith Romero as the new chair of the Federal Deposit Insurance Corporation (FDIC). This nomination comes after the current chair, Martin Gruenberg, announced his intention to resign once a successor is confirmed by the Senate. This follows a scathing independent investigation that revealed pervasive issues of sexual harassment, discrimination, and bullying within the agency tasked with regulating the banking sector.
Goldsmith Romero, a Democrat, previously served as the special inspector general for the Troubled Asset Relief Program at the Treasury Department during the Great Recession. In this role, she oversaw efforts to crack down on banks’ misuse of funds received from the program. The White House highlighted her more than 20 years of experience as a career federal attorney and leader in financial regulation, serving under four Presidents, and her expertise in promoting financial stability, market resiliency, integrity, and vibrancy. She has previously been unanimously confirmed by the Senate for other positions, which may bolster her chances of confirmation for this role.
As the incoming head of the FDIC, Goldsmith Romero will be tasked with addressing and fixing the long-standing cultural issues within the agency. An independent investigation commissioned by the FDIC confirmed reports of sexual harassment, discrimination, and bullying within the organization, including explicit messages and unwanted advances towards women, minority employees being passed over for promotions, and discriminatory behavior towards Hispanic individuals. Employees who participated in the investigation expressed fear of retaliation for reporting misconduct and noted a lack of disciplinary actions against wrongdoers.
Under pressure from Senate Banking Committee Democrat Sherrod Brown, Gruenberg announced his intention to resign once a new chair is confirmed. Some Republicans criticized this move, suggesting it was politically motivated to prevent Vice Chair Travis Hill, a Republican appointee, from automatically becoming chair if Gruenberg resigned immediately. This would have resulted in a deadlock within the FDIC’s board of directors, potentially stalling controversial banking regulations like increased capital requirements from being implemented.
The situation with the FDIC and the nomination of Goldsmith Romero as chair is a developing story that is likely to be updated as more information becomes available. President Biden’s choice to nominate her for this role highlights the administration’s commitment to addressing and rectifying systemic issues within important regulatory agencies like the FDIC. Goldsmith Romero’s experience, qualifications, and previous Senate confirmations make her a strong candidate for this position, and her leadership will be crucial in rebuilding trust within the agency and ensuring fair and effective regulation of the banking sector.
