News

Biden Nominates Gruenberg as FDIC Chair

November 21, 2022. 

On November 14, President Biden nominated Martin Gruenberg for permanent chairman of the Federal Deposit Insurance Corporation (FDIC).

Why it matters: Gruenberg has been serving as the FDIC's Acting Chair since the resignation of the former Chair Jelena McWilliams, a Trump appointee. He also led the agency from 2012 until McWilliams became Chair in 2018.

  • Biden appointees, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and acting Comptroller of the Currency (OCC) Michael Hsu hold two of the five-person Board positions.

What’s next: In September, President Biden nominated two Republican candidates, Travis Hill, a former senior adviser to McWilliams, and Federal Housing Finance Agency senior counsel Jonathan McKernan, to serve as FDIC vice chairman and director, respectively. Confirmation hearings for Gruenberg, Hill, and McKernan likely will take place at the same time.

Yes, but: Rep. Patrick McHenry, R-N.C., who will become Chair of the House Financial Services Committee in January but has no role in the confirmation, strongly opposes Gruenberg’s nomination. According to Law360, McHenry stated,

"Not only has acting Chair Gruenberg been a rabid partisan at the FDIC for more than a decade, but he also was a key player in Democrats' scheme to wrest control of the board from then-Chair Jelena McWilliams."

Go deeper: Gruenberg’s priorities include the Community Reinvestment Act (CRA), climate risk, bank mergers, crypto risk evaluation, and bank capital requirements. (See here for CREFC’s response to the recent CRA proposal.)

What they’re saying: Industry representatives, as reported by Law360, have been more moderate in their reaction. American Bankers Association CEO stated, "While we haven't always agreed on every issue, we have always appreciated acting Chairman Gruenberg's commitment to public service, his willingness to engage with industry and our shared interest in financial inclusion."

Contact 

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org

On November 14, President Biden nominated Martin Gruenberg for permanent chairman of the Federal Deposit Insurance Corporation (FDIC).

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.

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