WASHINGTON–Similar to how state credit union regulators have been pressing to have a state regulator named as a member of the NCUA board, the Conference of State Bank Supervisors (CSBS) is urging the Biden Administration to name one of its members to the FDIC board.
“We ask that Congress uphold its commitment to the dual banking system, and we stand ready to provide expertise or assistance to any extent it could benefit the White House’s proceedings,” wrote CSBS President and CEO John W. Ryan in a letter to President Biden’s chief of staff.
The letter notes that in 1996, with “overwhelming support,” Congress amended the Federal Deposit Insurance Act to require that one of the positions on the FDIC Board be held by someone with “State bank supervisory experience.”
“Further, the letter and the spirit of the law, as well as its legislative history, all indicate that this requirement is only met by a person who has worked in state government as a supervisor of state-chartered banks,” stated Ryan. “As Congress noted, someone with ‘state bank regulatory expertise and sensitivity to the issues confronting the dual banking system.’
Regulation Without Representation
“However, no one has met the state bank regulatory expertise requirement on the FDIC board since former Massachusetts State Bank Commissioner Thomas Curry finished his term in 2012,” Ryan continued. “That means the FDIC Board has not had anyone with state regulatory experience, and thus failed to comply with the statutes established by Congress, for nine years. This is despite the support of past FDIC Chair Ricki Tigert Helfer for ‘assuring State banking regulatory experience on the Board’ in addition to the legal mandate provided by Congress.”
Ideal Opportunity
Ryan added the current vacancies on the FDIC board—where Chairman Jelena McWilliams is now stepping down--provide the Administration and Congress with the opportunity to fulfill “this legal obligation.”
As CUToday.info has reported, NASCUS has also called on Congress to appoint a state regulator to either the current three-person NCUA board or to an expanded five-person board. State-chartered CUs comprise approximately one-half of all credit unions.
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