WASHINGTON— Jelena McWilliams’s decision to resign as chairman of the Federal Deposit Insurance Corp. (FDIC) will now open the way for Democrats to gain control of the agency’s agenda in the coming weeks, potentially leading to more-stringent requirements around bank tie-ups, climate change and other matters, according to one analysis.
As CUToday.info reported, McWilliams, a Republican who was appointed by President Trump, announced she will exit the FDIC board effective Feb. 4. The announcement follows a public fight with Democrats who now make up a majority of the FDIC board, the Wall Street Journal noted. The move comes after Ms. McWilliams had previously said she intended to serve out her full term, which lasts through mid-2023.
McWilliams’s resignation comes after Democratic members of the FDIC last month voted to launch a regulatory process related to bank mergers without the support of McWilliams, who blocked the request from being published by her agency, the Journal added.
Two Agencies Involved
As CUToday.info reported, the dispute involved both the FDIC and CFPB and something of a disagreement over who approved what, with one suggesting the other had violated a “time-honored tradition of collegiality.”
“The moves by the three Democrats—Consumer Financial Protection Bureau Director Rohit Chopra, FDIC board member Martin Gruenberg and acting Comptroller of the Currency Michael Hsu—signaled that the officials were trying to set the agenda for the FDIC and not waiting until Ms. McWilliams’s term expires,” the Journal stated. “Ms. McWilliams’s decision to leave now rather serving out her full term came after deciding that her relationship with fellow board members would likely remain acrimonious, particularly with Mr. Chopra, and that a continuing fight would demoralize staff and make the agency look political, according to people familiar with the matter.”
Filling McWilliams’ seat on the FDIC board is expected to take several months, at best.