Trump-appointed banking regulator resigns after partisan struggle

The top US banking supervisory agency appointed by former President Donald Trump announced on Friday that she will resign, paving the way for the Biden administration to shape financial supervision more directly.

Jelena McWilliams, who has been chairman of the Federal Deposit Insurance Corporation since June 2018, stated that she will leave the organization on February 4, more than a year before her term expires

The decision was made after a disagreement between the top leadership of the FDIC, which provides insurance for bank deposits in the United States, and the Consumer Financial Protection Bureau, the U.S. consumer regulator, over the review of bank mergers.

This situation pitted McWilliams against FDIC board member Martin Gruenberg and CFPB director Rohit Chopra, both of whom were Democrats. As part of the Democratic majority, Glennberg and Chopra voted to review the rules related to the bank’s merger approval process, but McWilliams opposed.

McWilliams detailed In a review article published for the Wall Street Journal in early December, the argument was raging, calling the situation “unprecedented in history.”

“This conflict has nothing to do with the bank merger. If so, the board members would be willing to work with me and the FDIC staff instead of trying to hostile FDIC internal processes, staff and board agendas,” she wrote. “This episode attempts to seize control from the chairman of an independent agency by changing the government.”

In his resignation letter to President Joe Biden, McWilliams stated that being at the helm of the Federal Deposit Insurance Corporation is a “great honor” and emphasized that the financial system experienced the worst economic contraction in history last year. Robustness after one.

She wrote: “Starting in March 2020, the unexpected impact of Covid-19 has tested the resilience of our financial system, and the FDIC has acted quickly to maintain stability and provide flexibility to banks and consumers.” “The core of our financial system. Not only has it withstood the storm, it is also a tangible source of strength for the US economy.”

Prior to his appointment at the FDIC, McWilliams served as the chief legal counsel of the Senate Banking, Housing, and Urban Affairs Committee, and served as an attorney for the Federal Reserve Board of Governors.

With her departure, Biden has another vacant supervisory position to fill. After Randal Quarles’s tenure expired in October, the top supervisory position of the U.S. Central Bank is still vacant.

Former Fed governor, remain The agency was fully established in December and was appointed to the position by Trump in 2017.

Quarles was criticized by the progressive Democratic Party for relaxing some of the rules and regulations restricting banks after the global financial crisis.

It is expected that the candidates for the FDIC position and the Federal Reserve Vice Chairman of Supervision will take a firmer stance on financial supervision issues.

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