All Financial Services Committee Republicans, led by Chairman Patrick McHenry (NC-10), have sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg demanding his immediate resignation. Despite announcing his intent to resign, Chair Gruenberg continues to push partisan regulatory initiatives while failing to address widespread and entrenched misconduct at the agency.
The letter states: "We write to follow up on our multiple requests for your immediate resignation. Your unwillingness to leave the Federal Deposit Insurance Corporation (FDIC) continues to erode the credibility and independence of the agency you are tasked to protect. The July 30, 2024 FDIC Board meeting is the clearest example to date of your efforts to politicize the FDIC."
According to the letter, under Gruenberg's direction, a significant number of new matters were considered at the July 30th Board meeting, most of which were approved along partisan lines. One article described this policy shift as being "aimed at undoing Trump-era deregulation in a marathon board meeting," further describing it as "the most policy-packed FDIC board meeting we’ve seen this administration—certainly the longest we can recall."
The committee members argue that these actions undermine bipartisan efforts and create uncertainty and unnecessary expenses for FDIC-regulated banks. They also highlight that Democrat-appointed FDIC Board members appear willing only to support Gruenberg's progressive agenda.
"For example, the Board approved changes to the chartering process for industrial banks (ILCs), pulled back changes for brokered deposits for partisan reasons, and approved a power-grab effort by Director Chopra, which was previously abandoned, to implement new oversight over asset managers," reads the letter. It also notes that these decisions were made with a 3-2 margin due to support from Director Hsu, who has been serving as Acting Comptroller of the Currency without presidential nomination or Senate confirmation for over three years.
The committee members call upon Gruenberg "to do the right thing by resigning immediately" so that the FDIC can restore its independence. They also request his appearance before the Committee on September 19, 2024, at 10:00 a.m., should he choose not to resign.