September 30, 2022

Federal Deposit Insurance Corporation Chairman resigns over Democrat partisanship

It seems nobody wants to serve in President Joe Biden’s administration. Key resignations are coming from everywhere, including some unexpected places.

Federal Deposit Insurance Corp. Chairman Jelena McWilliams has announced her resignation effective Feb. 4 over what she dubs a “hostile takeover” of the agency by Democrats, according to The Hill. McWilliams was appointed by former President Donald Trump but is the only Republican on the board.

McWilliams has served since 2018 and was appointed to relax some of the stricter regulations that were an overcorrection to the financial crisis of 2008. The Dodd–Frank Wall Street Reform and Consumer Protection Act that resulted from the Great Recession hamstrung many financial institutions and their ability to invest, Fox News reported.

Recently, three Democrats on the board attempted to vote on stricter standards for mergers while freezing out the chairman, who is the lone Republican. McWilliams considered this a “hostile takeover,” though some contended the other board members’ will should trump that of McWilliams despite her role.

“Putting partisanship & ideology over what was best for the [FDIC] & depositors, Chair McWilliams started a political fight she couldn’t win,” Dennis Kelleher, CEO of the market regulation advocacy nonprofit Better Markets, tweeted. “Now, rather than work cooperatively & collegially in the best interests of the organization, she has resigned,” he said.

Unfortunately, McWilliams’s resignation will deliver the five-member board completely into the hands of Democrats, according to Reuters. This comes as Biden needs to align the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency to his financial crackdown.

Losing McWilliams will require Biden to appoint another chairman. However, getting his pick confirmed in the 50-50 split between Republicans and Democrats in the Senate may prove to be a challenge though not impossible.

In the midst of a burgeoning economic crisis mostly of his own doing, Biden has slipped in popularity. Democratic lawmakers and staff members alike are abandoning ship to hedge against the coming electoral backlash, and McWilliams is indirectly another casualty.

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