Kennedy and Bank Republicans call on President to reprimand FDIC coup attempt – News Releases

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WASHINGTON – Senator John Kennedy (R-La.), Senator Pat Toomey (R-Pa.) And other Republicans on the Senate Banking Committee have called on President Joe Biden to reprimand Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), and Federal Deposit Insurance Corporation (FDIC) director Marty Gruenberg for their illegitimate attempt to violate the FDIC’s 88-year tradition of working independently of partisan political influence.

In a letter, the senators also urged the president to immediately replace Director Gruenberg – whose term expired three years ago and who is serving on a temporary basis – and to appoint someone to fill the vacant Republican seat on the council of administration of the FDIC.

“America’s independent financial regulators are respected around the world for their professionalism and integrity, and we are concerned that the actions of Director Chopra and Director Gruenberg, if left unchecked, could undermine confidence in our financial institutions. and our markets ” wrote the senators.

On December 9, CFPB director Chopra and FDIC director Gruenberg issued a joint statement on the CFPB website, claiming that the FDIC had approved a request for information on bank mergers. Soon after, the FDIC clarified that no such document had been approved by the FDIC and that there had not been a valid vote of the FDIC board of directors.

Members of the Board of Directors may not make any regulatory changes or take action for a vote without the consent of the President of the FDIC.

“The statement and actions of Director Chopra and Director Gruenberg make it clear that they violated FDIC procedures with the apparent aim of usurping the powers of the President and preventing him from carrying out his duties and responsibilities. official. In addition to violating the FDIC’s statutes and processes, their actions upended an 88-year tradition that the FDIC board of directors worked collegially with its president as well as working independent of any partisan political influence ”, the senators explained.

“We urge you to quickly nominate a candidate to replace Director Gruenberg, as well as a candidate to fill the vacant position of Vice Chairman of the FDIC Board of Directors. These candidates must be well-qualified and traditional individuals who will abide by the institutional standards and practices that Director Chopra and Director Gruenberg have voluntarily chosen to ignore ”, concluded the senators.

The letter is available here.


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