Banking Republicans Call on the President to Rebuke FDIC Coup Attempt
Urge Biden to Promptly Replace Gruenberg and Fill Vacant Seat
Washington, D.C. – U.S. Senate Banking Committee Republicans are calling on President Joe Biden to rebuke Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and Federal Deposit Insurance Corporation (FDIC) Director Marty Gruenberg for their illegitimate attempt to violate the FDIC’s 88-year tradition of working independent from partisan political influence. In a letter, the senators also urged President Biden to immediately replace Director Gruenberg—whose term expired three years ago and is serving in a temporary capacity—and nominate an individual to fill the vacant Republican seat on the FDIC board.
“As a public servant who spent nearly four decades
serving in the U.S. Senate, we believe you understand and hold deep respect for
historical precedent, institutional norms, and courteous treatment of your
colleagues—even in the face of political disagreement,” the senators wrote. “America’s independent financial
regulators are respected the world over for their professionalism and
integrity, and we fear the actions of Director Chopra and Director Gruenberg,
if left unchecked have the potential to weaken faith in our financial
institutions and markets.”
On December 9, CFPB Director Chopra and
FDIC Director Gruenberg published a joint statement to the
CFPB’s website claiming the FDIC approved a request for information (RFI) on
bank mergers. Shortly thereafter, the FDIC clarified that no such document had
been approved by the FDIC and that there was no valid vote by the FDIC board.
“Director Chopra and Director Gruenberg’s
statement and actions make clear that they violated FDIC procedures with the
apparent goal of usurping the powers of the chairman and inhibiting her ability
to carry out her official duties and responsibilities,” the senators
continued. “In addition to violating the FDIC bylaws and processes, their
actions upended an 88-year tradition of the FDIC board working on a collegial
basis with its chairman as well as working independent from partisan political
influence.”
As the senators point out, Director
Gruenberg is going on nearly two decades as an FDIC board member, but is
currently serving in a temporary role because his term expired three years ago.
Despite the fact that his position requires Senate confirmation, he has
continued to serve on the FDIC board long after the
expiration of his term in order to undermine its Senate-confirmed leader.
“We urge you to nominate promptly a candidate to replace Director Gruenberg,
as well as a candidate to fill the vacant Vice-Chairman position on the FDIC
board. These candidates should be well-qualified, mainstream individuals who
will respect the institutional norms and practices that Director Chopra and
Director Gruenberg have willfully chosen to ignore.”
To read the
senators’ full letter to President Biden, click here.
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