Washington, D.C. — The White House is set to nominate Christy Goldsmith Romero, currently a commissioner at the Commodity Futures Trading Commission (CFTC), to chair the Federal Deposit Insurance Corporation (FDIC). This nomination, confirmed by a source familiar with the situation on Wednesday, aims for a hearing the week of July 8.
Goldsmith Romero will succeed Martin Gruenberg, who has agreed to step down after an investigation revealed extensive issues, including sexual harassment and misconduct, at the FDIC. This swift nomination is part of President Joe Biden’s strategy to advance his regulatory agenda, particularly with planned significant bank capital increases, before the upcoming U.S. presidential election.
The White House, along with Senate Banking Committee Chair Sherrod Brown, a Democrat responsible for moving FDIC nominations forward, has not announced a specific date for the hearings. Additionally, the nomination of Kristin Johnson, another Democratic CFTC commissioner, for Assistant Secretary for Financial Institutions at the Treasury Department will be formalized simultaneously with Goldsmith Romero’s.
Gruenberg, also a Democrat, will remain in his position until the Senate confirms the new chair. His continued presence ensures Democratic control of the FDIC until at least January of the following year.
With the November general election approaching and limited legislative time—due to the Senate’s recess schedule in August and the inclination of Senators to campaign—there is a pressing need to expedite the confirmation process. According to previous reports from the Wall Street Journal and Punchbowl News, the formal announcement of Goldsmith Romero’s nomination is expected imminently.
While the administration has expressed a desire to move quickly, official comments from the White House, Senate Banking Committee, Treasury Department, and the FDIC have not been provided as of the latest update.
The nominations of Goldsmith Romero and Johnson come at a crucial time for the Biden administration, as it seeks to solidify its regulatory measures ahead of potential political shifts in the upcoming elections.
