Stop the Politics and Give the FDIC a New Leader
Installing better management at the bank regulator should be a bipartisan priority.
The new boss?
Photographer: Valerie Plesch/Bloomberg
Things aren’t going well at the Federal Deposit Insurance Corp. After an explosive investigation revealed widespread sexual harassment, discrimination and other misconduct at the agency, Chair Martin Gruenberg agreed to resign on May 20. Yet more than a month later, the White House’s proposed replacement — a strong pick on the merits — may fall victim to politics.
The FDIC’s work is essential to protecting Americans’ bank accounts, but its regulatory proposals are often divisive. For instance, a plan to raise capital requirements for the biggest banks has drawn condemnation from Republicans and praise from most Democrats.