Schumer has some explaining to do.https://t.co/PIgnUW51Qh
— CJ Pearson (@thecjpearson) September 16, 2022
“The head of one of the government’s major agencies, the Federal Deposit Insurance Corporation or FDIC, has resigned after warning of a “hostile takeover” by the Democrats. Jelena McWilliams, 48, who was the chairperson of the agency, penned a letter to President Joe Biden on Friday attacking Senate Democrats for going around her to suit their own agenda.”
McWilliams was appointed to the position in 2018 under former President Trump. Her resignation will be effective Feb. 4.
McWilliams did not provide a direct reason for her resignation in her letter to the president. However, she previously published a December op-ed in which she described a “hostile takeover” of the FDIC by Democrats.
The op-ed in The Wall Street Journal warned of a “hostile takeover” by Democrats when the new director of the Consumer Financial Protection Bureau and FDIC board member Rohit Chopra said that she was not recognizing attempts by Democrat regulators to review the rules about bank mergers.
“The Federal Deposit Insurance Corporation is led by a five-member board, which for decades has delegated day-to-day operations to its chairman, who by statute serves a five-year term. This structure was designed to ensure independence from changing political administrations and has led to a long legacy of collegiality. For 88 years the chairman has controlled the board agenda and worked collaboratively with other board members,” she said in her piece.
“That all changed on Oct. 31, when board member Rohit Chopra presented me with a draft request for information on bank mergers. Two-and-a-half weeks earlier, Mr. Chopra had been sworn in as director of the Consumer Financial Protection Bureau, a position entitling him to a seat on the FDIC board,” she said.
“This conflict isn’t about bank mergers. If it were, board members would have been willing to work with me and the FDIC staff rather than attempt a hostile takeover of the FDIC internal processes, staff and board agenda.,” she wrote. Conservative Brief.
McWilliams’s resignation gives Biden a chance to install a new FDIC chief in line with the industry-skeptical financial regulators he has already appointed. Biden’s choice will almost certainly face intense opposition from Republican senators, and the president has a narrow margin for error in the 50-50 Senate.
Biden must also appointee nominees for two vacant FDIC director positions, including the one held on an interim basis by Gruenberg. Chopra and Hsu are de facto members of the FDIC board as CFPB director and acting comptroller of the currency, respectively.
FDIC Chairman Jelena McWilliams Announces Her Resignation
For Release
Federal Deposit Insurance Corporation Chairman Jelena McWilliams today sent the following letter to the President of the United States:
The Honorable Joseph R. Biden, Jr.
President of the United States
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC 20500
Dear Mr. President,
After serving as the 21st Chairman of the Federal Deposit Insurance Corporation (FDIC) since June 2018, I intend to resign as Chairman effective February 4, 2022.
When I immigrated to this country 30 years ago, I did so with a firm belief in the American system of government. During my tenure at the Federal Reserve Board of Governors, the United States Senate, and the FDIC, I have developed a deep appreciation for these venerable institutions and their traditions. It has been a tremendous honor to serve this nation, and I did not take a single day for granted. Throughout my public service, I have been constantly reminded how blessed we are to live in the United States of America.
Serving the American people alongside the dedicated career professionals of the FDIC has been the highlight of my professional life. Throughout my tenure, the agency has focused on its fundamental mission to maintain and instill confidence in our banking system while at the same time promoting innovation, strengthening financial inclusion, improving transparency, and supporting community banks and minority depository institutions, including through the creation of the Mission Driven Bank Fund. Today, banks continue to maintain robust capital and liquidity levels to support lending and protect against potential losses.
The unexpected shock of COVID-19 tested the resilience of our financial system beginning in March 2020, and the FDIC took swift actions to maintain stability and provide flexibility for banks and consumers. The core of our financial system not only weathered the storm, but was a tangible source of strength for the American economy. The committed staff of the FDIC deserve great credit for these results, and they have my profound gratitude. I am humbled by their dedication to the FDIC’s mission and honored to have served with them.
Sincerely,
Jelena McWilliams