WASHINGTON–FDIC Chairman Jelena McWilliams has submitted her resignation effective Feb. 4, 2022.
In her letter of resignation to President Biden, McWilliams stated, “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.”
McWilliams was born in Belgrade, Serbia.
“Serving the American people alongside the dedicated career professionals of the FDIC has been the highlight of my professional life,” McWilliams went on to write. “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.”
A Divided Quintet
Unlike the three-member NCUA board, the FDIC board has five members and it has been increasingly divided in recent months. As CUToday.info reported here, the “growing rift” among board members was evident (as detailed here), when the Federal Deposit Insurance Corp. (FDIC) recently released a statement in which it said its “statement” should not have been included in an earlier Consumer Financial Protection Bureau statement.
“The standoff was a small sign of a bigger rift brewing at the FDIC, which has a hand in overseeing all U.S. banks but focuses closely on the smallest ones,” the New York Times reported. “The chairwoman of the FDIC, Jelena McWilliams, is a Republican and a Trump appointee — one of the few remaining in an alphabet soup of federal bank regulators that includes the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency.”
The Times noted the other members on the FDIC board, including Martin J. Gruenberg and Rohit Chopra, the newly confirmed director of the Bureau, are Democrats.
President Biden will now have an opportunity to appoint a new member to the FDIC and a new chair.
Weathering the Storm
“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,” McWilliams went on to write in her resignation letter. “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.”