U.S. Rep. French Hill (R-AR) and his fellow U.S. House Financial Services Committee Republicans are demanding that Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg resign.
“Your unwillingness to leave the FDIC continues to erode the credibility and independence of the agency you are tasked to protect,” the lawmakers wrote in an Aug. 14 letter sent to Gruenberg, who they claim is politicizing his office.
For instance, during the July 30 FDIC board meeting, at Gruenberg’s direction, a long list of new matters was considered, the majority of which were approved along partisan lines, according to their letter, which cited a Punchbowl news article describing the policy dump as being “aimed at undoing Trump-era deregulation in a marathon board meeting.”
“These reports only underscore your handiwork,” wrote Rep. Hill and his committee colleagues. “Rather than work in a bipartisan manner to ensure broadly supported improvements to FDIC policies, regulations, and rules, you continue to pursue more partisan policies to the detriment of the FDIC’s independence.
“Unfortunately for FDIC regulated banks, these drastic policy swings create uncertainty and needless expenses,” they added.
Among the 28 members who joined Rep. Hill in signing the letter was U.S. Reps. Frank Lucas (R-OK), Bill Huizenga (R-MI), Ann Wagner (R-MO), Andy Barr (R-KY), Tom Emmer (R-MN), Bryan Steil (R-WI), Andrew Garbarino (R-NY), and Young Kim (R-CA).
The lawmakers also noted that the Democrat-appointed FDIC board members are only willing to support Gruenberg’s progressive agenda.
“Your continued efforts to push through partisan policymaking does a disservice not only to the FDIC, but the member institutions and the customers it serves,” they wrote. “Moreover, it further confirms that your commitment to improving the FDIC’s general toxic culture was merely a thinly veiled effort to keep power.”
Rep. Hill and his colleagues called on Gruenberg “to do the right thing” by resigning immediately, pointing out that once he’s vacated the chairmanship, then the FDIC can begin to “resurrect any vestige of independence that remains” following his tenure.
However, if Gruenberg doesn’t resign, they requested that he appear before their committee on Sept. 19 to explain himself and his “continued partisan policy-making efforts.”