White House to nominate Gruenberg as FDIC chair

The White House on Monday announced its intent to nominate Martin Gruenberg to be chairman of the Federal Deposit Insurance Corp., giving the Democrat another turn at the head of the bank regulator’s board.

Gruenberg, who chaired the FDIC board from 2012 to 2018, has served as acting chairman since earlier this year after the Republican-appointed chair stepped down amid a spat with the board’s Democrats.

Senate Banking Chair Sherrod Brown (D-Ohio) applauded the nomination and said he looked forward to moving it swiftly through the committee.

“Marty has years of experience shepherding the agency through difficult economic times, working with board members of both parties, and taking actions that protect consumers and strengthen the banking system,” Brown said in a statement.

The announcement follows the nominations in September of two Republicans to fill vacancies on the board of the independent agency.

Travis Hill, nominated to be vice chair, worked as a senior adviser to former FDIC Chair Jelena McWilliams and was previously senior counsel on the Senate Banking Committee Republican staff. Jonathan McKernan, tapped to be a director, is a senior counsel at the Federal Housing Finance Agency, currently on detail to the Senate Banking Committee’s GOP staff, and worked at the Treasury Department and for former Sen. Bob Corker (R-Tenn.).

If the nominees are confirmed, it would bring GOP voices back to the board and mark the first time the FDIC has had a full slate since 2015.

The move to nominate two Republicans, including a vice chairman, surprised agency watchers because it would have effectively handed over control of the agency from Gruenberg to the panel’s Republican vice chairman once he was confirmed.

The White House at the time quickly said the president intended to nominate someone to serve as chairman.

Gruenberg has been serving on an expired term for nearly four years. He can continue to serve in that role indefinitely. The other two seats are held by acting Comptroller of the Currency Michael Hsu and Consumer Financial Protection Bureau Director Rohit Chopra, both Biden appointees.