The White House on Thursday nominated Christy Goldsmith Romero to serve as committee chair Federal Deposit Insurance Corporation She was expected to head the U.S. banking regulator after Martin Grunberg resigned amid scandal.
Goldsmith Romero still needs to be confirmed by committee members United States SenateServed as Commissioner Commodity Futures Trading Commission The role of the U.S. Commodity Futures Trading Commission (CFTC) will begin in March 2022.
Her career includes 12 years with the company Ministry of FinanceShe spent much of her time as Special Inspector General for the Troubled Asset Relief Program (TARP). The controversial Troubled Asset Relief Program, implemented in the aftermath of the subprime mortgage crisis, allowed the federal government to become shareholders in more than 700 banks.
In a statement from the Conference of State Bank Supervisors (CSBS), Executive Vice President for Policy and Supervision Karen Lawson criticized the nomination.
“The White House has once again ignored the requirements of the Federal Deposit Insurance Act by nominating individuals who lack experience in regulating state-owned banks to the FDIC Board of Directors,” Lawson said.
“There’s a reason Congress insisted that the FDIC board have state regulatory experience: States are the issuers and primary regulators of 79 percent of U.S. banks. State regulators understand the economic impact of state-chartered banks on families and small businesses in their communities. Federal Supervision and regulation of banks should be guided by important state and local perspectives.
“In considering this nominee, the Senate should fully explore her case Positions on key issues affecting the dual banking system and the importance of safeguarding the role of the state in our financial system.
In November 2023, Grunberg and the FDIC were embroiled in the scandal after a Wall Street Journal investigation revealed years of sexual harassment and misogyny that had created a “toxic work environment.” The report states that in 2020, “the agency’s Inspector General found deficiencies in the FDIC’s policies to prevent, identify, and punish sexual harassment.”
Last month, an independent investigation Cleary Law FirmAccording to Politico, the New York-based law firm “confirmed widespread sexual misconduct, discrimination and retaliation in the workplace culture.” While the investigation did not call for Grunberg to resign, it also questioned whether he had the “moral authority” to implement the necessary changes and asked for detailed instances of Grunberg “losing his temper and berating employees.”
Weeks later, Grunberg announced his resignation after his successor was confirmed. He has been a member of the FDIC Board of Directors since 2005, serving twice as Chairman and on several occasions as Acting Chairman.
Reuters reports that Senate confirmation hearings for Goldsmith Romero could begin as early as next month, with the new chair likely to take office before the November presidential election.
U.S. Rep. Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee, issued a statement Thursday following the nomination of Goldsmith-Romero.
“Martin Gruenberg has had too many days at the helm of the FDIC,” McHenry said. “Chairman Grunberg’s successor must be prepared to act immediately to implement Cleary Gottlieb’s recommendations and end the serious misconduct at the agency during his tenure.
“If confirmed, Christy Goldsmith Romero must immediately begin taking steps to reverse the toxic culture that Grunberg oversaw to rebuild trust among FDIC staff and management. The Senate must move quickly forward with the confirmation process to limit Chairman Grunberg’s ability to further damage the agency and jeopardize financial stability.
Goldsmith Romero also served as an adjunct professor of law at Georgetown University Law Center and the University of Virginia School of Law from 2019 to 2021.
She also spent six years at the school Securities and Exchange Commission (SEC), including as an adviser to Chairman Mary Schapiro and Christopher Cox during the financial crisis of the late 2000s. She earned her law degree from Brigham Young University and her bachelor’s degree from Old Dominion University.
Editor’s note: This article has been updated to include comments from the National Bank’s Board of Supervisors.
