FDIC nominee: Community banks are the lifeblood of many communities

The Biden administration’s nominee for FDIC chair—Christy Goldsmith Romero—told Congress she gained a great appreciation for community banks during her time at the Office of the Special Inspector General for the Troubled Asset Relief Program.

Testimony: Testifying at a Senate Banking Committee nomination hearing, Goldsmith Romero said community banks play an important role in the nation’s economy and are the lifeblood of many communities across the country. Goldsmith Romero said that, if confirmed, she would prioritize a complete overhaul of the FDIC’s workplace culture after an independent review found the agency has failed to provide a workplace safe from misconduct.

Highlights: During the hearing, Goldsmith Romero also said she is open to re-proposing the Basel III Endgame capital proposal. Federal Reserve Chairman Jerome Powell told Congress earlier this week that regulators should issue a revised Basel III Endgame proposal and that the Fed is working with the FDIC and OCC to reach agreement on the need for a new proposal.

Details: If confirmed by the full Senate, Goldsmith Romero would replace FDIC Chair Martin Gruenberg, who announced he would step down after an independent review found evidence of harassment and discrimination at the agency. She would become the first new FDIC leader in 20 years.

Other Nominees: The hearing also featured the nominations of Caroline Crenshaw to be a member of the Securities and Exchange Commission, Kristin Johnson to become assistant secretary of the Treasury, and Gordon Ito to become a member of the Financial Stability Oversight Council.