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CBA Urges FDIC Board To Avoid Passing New Rules Until A Member Of The Minority Party Is Seated
In a new letter sent yesterday to members of the Federal Deposit Insurance Corporation (FDIC) Board of Directors, including Chairman Jelena McWilliams, Director Martin J. Gruenberg, Acting Comptroller of the Currency, Michael Hsu, and Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, Consumer Bankers Association (CBA) President & CEO Richard Hunt urged the agency’s leadership to avoid passing any new rules or regulations until a board member representing the views of the minority party is seated.
Recognizing the proud legacy of the FDIC Board – where, for nearly a century, members of opposing political views have worked together to maintain stability and confidence in the nation’s financial system – CBA wrote:
“The Board has throughout its history worked to take into consideration the will of differing ideologies, regardless of which political party has been the majority or minority, and it is essential the voice of the political minority continues to be heard. […] Diverse ideological representation is one of these protections for ensuring no voice in the United States is outright silenced and unrepresented.”
Underscoring the importance of ensuring the views of both the majority and minority parties are represented on the agency’s board in the wake of Chairman McWilliams impending resignation on February 4, CBA added:
“We also encourage the Biden administration to expeditiously nominate, and the Senate to confirm, a qualified candidate who will represent the minority party as soon as possible. […] Failure (to do so) would be a dangerous and radical break from nearly one-hundred years of minority representation and from our country’s ideals.”
The letter goes on to urge the FDIC Board to avoid passing any new rules or regulations until a member of the minority party is seated:
“The Board promulgating new rules and regulations with only three members, all representing the same political party […] threatens not only the strength and resiliency of the banking system; it may also harm the hundreds of millions of families who depend on it. That is why it is imperative the Board wait to pass any new rules or regulations until a member of the minority party is seated. […] Doing so will help ensure there is minimal disruption to the FDIC’s ability to protect stability and public confidence in our financial system.”
To read the full letter, click HERE.
Last month, after Chairman McWilliams announced her intent to resign, CBA commended McWilliams for her years of service and reiterated the need for the FDIC Board to pause any new rules or regulations until her replacement is seated, stating “to preserve confidence in the FDIC, the Board of Directors should not pass any new rules or regulations until a replacement Board member representing the minority party is seated. Otherwise, it will be operating without any checks and balances, akin to Congress legislating with input only from the party in power.” To read CBA’s full statement, click HERE.
Earlier this month, CBA’s Richard Hunt wrote an op-ed in The Hill reflecting on the importance of maintaining transparency and confidence at the FDIC, noting “The implications of potentially unstable leadership at the FDIC and other prudential regulators are especially significant for an industry affecting nearly every American. … a lack of transparency — and the distrust and instability that stem from it — would not only be harmful to America’s banking system. It would be harmful to the hundreds of millions of families who depend on it.” To read the full op-ed, click HERE.
Last spring, Chairman McWilliams spoke at CBA’s Washington Forum. To read an overview of her remarks, including her views on the strength of America’s well-regulated banking system, especially during the height of the COVID-19 pandemic, when the American people needed support most, click HERE.