Scott, GOP colleagues set to propose FDIC Board Governance Reform Act

U.S. Sen. Tim Scott (R-SC) and a group of Republican lawmakers plan to unveil legislation that would reform management of the Federal Deposit Insurance Corporation (FDIC) in an effort to preserve its political independence.

“Any threat to the independence of the FDIC is a direct threat to the agency’s ability to carry out its nonpartisan mission of maintaining stability and public confidence in our nation’s financial system,” Sen. Scott said in a Jan. 24 statement. “By protecting the independent status of the FDIC, we will preserve the unbiased oversight of the banking industry.”

The FDIC Board Governance Reform Act would remove the director of the Consumer Financial Protection Bureau (CFPB) and Comptroller of the Currency as permanent members of the FDIC Board of Directors and replace those seats with two presidentially appointed, Senate-confirmed board members, according to the text of the bill. 

The bill also would establish lifetime service limits for FDIC board members and place clear boundaries on how long a board member may continue to serve after his or her Senate-confirmed term has expired, according to the text. 

Additionally, the FDIC Board Governance Reform Act would limit board members from serving more than 12 years total, and limit the period a board member may serve in holdover status.

Among the GOP lawmakers who are cosponsoring the forthcoming bill are U.S. Sens. Thom Tillis (R-NC), Jerry Moran (R-KS), and Steve Daines (R-MT).