(Reuters) -The White House could decide on a nominee to replace the chair of the U.S. Federal Deposit Insurance Corporation (FDIC) as early as next week, two people with knowledge of the matter said on Friday as further evidence of agency lapses emerged.
Martin Gruenberg, FDIC Chair, announced plans to step down once a successor is confirmed. Lawmakers demand fresh leadership after an investigation uncovers misconduct.
Friday saw the FDIC’s internal watchdog reveal delayed information on misconduct allegations. This may intensify Republican demands for Gruenberg’s removal under Democratic President Joe Biden.
The White House is under pressure to quickly fill the role and preserve Biden’s financial regulation agenda, including major bank capital hikes, just six months ahead of the U.S. presidential election.
The FDIC insures bank deposits and helps safeguard the stability of the banking system.
A decision on a nominee is expected within weeks and could come as early as next week, a senior administration official said on Friday. The White House has already been in touch with Senator Sherrod Brown, who chairs the Senate Banking Committee which oversees the FDIC, about scheduling a swift confirmation hearing, another White House official said.
Brown’s office did not respond to a request for comment.
Furthermore, the appointment of the FDIC chair by the White House entails meticulous candidate evaluation. The administration seeks to appoint a competent leader through rigorous assessment of qualifications and experience. Moreover, the decision-making process prioritizes bipartisan support and consensus-building.
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