In breaking news, President Joe Biden has officially nominated Christy Goldsmith Romero as the next chair of the Federal Deposit Insurance Corporation (FDIC). This announcement follows current FDIC Chair Martin Gruenberg’s declaration of intent to resign once a successor is confirmed by the Senate, in light of a recent independent investigation revealing widespread sexual harassment, discrimination, and bullying within the agency.
Goldsmith Romero, a Democrat, previously served as the special inspector general for the Troubled Asset Relief Program at the Treasury Department during the aftermath of the Great Recession. Her responsibilities included overseeing efforts to combat banks’ misuse of funds received from the program.
The White House highlighted Goldsmith Romero’s extensive experience as a federal attorney and leader in financial regulation under four Presidents, emphasizing her role in promoting financial stability, market resiliency, integrity, and vibrancy. Her previous unanimous confirmations by the Senate for other positions also bolster her chances of confirmation for this new role.
As incoming head of the FDIC, Goldsmith Romero faces the challenge of addressing the agency’s longstanding toxic culture. The decision to nominate her externally reflects a need for a fresh perspective to instigate lasting change within the organization.
An independent investigation commissioned by the FDIC corroborated reports of sexual misconduct and discrimination within the agency, including explicit messages and unwanted advances towards female employees, as well as discriminatory practices against minorities and women.
The pressure from top Democratic Senator Sherrod Brown led to Gruenberg’s decision to step down, sparking criticism from Republicans who viewed the move as politically motivated. If Gruenberg had resigned immediately, Vice Chair Travis Hill, a Republican appointee, would have assumed the chair position, potentially causing a deadlock within the board of directors and impeding critical banking regulations.
This developing story will continue to unfold as Goldsmith Romero’s nomination progresses through the Senate confirmation process. Stay tuned for updates on this important appointment at the FDIC.
