{"id":15048,"date":"2025-05-13T18:32:40","date_gmt":"2025-05-13T18:32:40","guid":{"rendered":"https:\/\/finderica.com\/?p=15048"},"modified":"2025-05-13T18:32:40","modified_gmt":"2025-05-13T18:32:40","slug":"new-trump-faces-at-fdic-fed-create-uncertainty-for-bankers","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=15048","title":{"rendered":"New Trump faces at FDIC, Fed create uncertainty for bankers"},"content":{"rendered":"<div>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<div class=\"RawHtml\" data-module-mame=\"editors-pick\">\n<div class=\"ep_main\" style=\"margin-top: 20px; margin-bottom: 20px; background-color: #F5F5F5; border-top: 2px solid #00745F; padding: 0px 20px 20px 20px; width: 100%;\">\n<div class=\"ep_pill\" style=\"padding-top: 20px; padding-bottom: 10px; margin: auto;\"><\/div>\n<p>Enjoy complimentary access to top ideas and insights \u2014 selected by our editors.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/8a3e2d7\/2147483647\/strip\/true\/crop\/4000x2667+0+0\/resize\/1024x682!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2Fe8%2F10%2Fec96736242d6918ad9732e09ab35%2F428959132.jpg\"> <\/p>\n<div class=\"Figure-content\"><figcaption class=\"Figure-caption\">From left: Scott Bessent, U.S. treasury secretary, President Donald Trump and David Sacks, White House Artificial Intelligence (AI) and Crypto czar.<\/figcaption><p>Chris Kleponis\/Bloomberg<\/p>\n<\/p><\/div>\n<\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">What you should know:<\/h2>\n<ul class=\"rte2-style-ul\" style=\"margin-top:0;margin-bottom:0;padding-inline-start:48px;\">\n<li>As Fed Chair Jerome Powell&#8217;s <ps-link><a href=\"#powell\" class=\"Link\" target=\"_self\">term expires next year<\/a><\/ps-link>, the door opens for a Trump nominee more aligned with the GOP.<\/li>\n<li>Michelle Bowman&#8217;s bid for a Fed supervisory role <ps-link><a href=\"#bowman\" class=\"Link\" target=\"_self\">gains ground<\/a><\/ps-link> after a majority vote from the Senate Banking Committee.\u00a0<\/li>\n<li>Bankers remain worried that Treasury Secretary Scott Bessent&#8217;s search for a permanent FDIC chair is <ps-link><a href=\"#bessent\" class=\"Link\" target=\"_self\">taking too long<\/a><\/ps-link>.<\/li>\n<\/ul>\n<p>The game of musical chairs being played by banking regulators is showing no signs of stopping, as political appointments at the Federal Deposit Insurance Corporation, Consumer Financial Protection Bureau, Federal Reserve and other agencies remain in limbo.<\/p>\n<p>The <ps-link><u>Trump administration<\/u><\/ps-link> has seen the departure of leaders such as former CFPB Director <ps-link><u>Rohit Chopra<\/u><\/ps-link>, FDIC Chair <ps-link><u>Martin Gruenberg<\/u><\/ps-link> and Federal Housing Finance Agency <ps-link><a href=\"https:\/\/www.nationalmortgagenews.com\/news\/fhfa-enters-new-era-as-chief-quietly-plans-departure\" class=\"Link\" target=\"_blank\" rel=\"noopener\"><u>Sandra Thompson<\/u><\/a><\/ps-link> following President Trump&#8217;s Jan. 20 inauguration. The removal of the old guard comes as part of Trump&#8217;s wide-sweeping campaign for <ps-link><u>deregulation<\/u><\/ps-link> across the banking industry, leaving executives hopeful for the future and enforcement experts less so.\u00a0\u00a0<\/p>\n<p>&#8220;It is the policy of my Administration to significantly reduce the private expenditures required to comply with Federal regulations to secure America&#8217;s economic prosperity and national security and the highest possible quality of life for each citizen,&#8221; Trump said in his Jan. 31 <ps-link><a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/unleashing-prosperity-through-deregulation\/\" class=\"Link\" target=\"_blank\" rel=\"noopener\"><u>executive action<\/u><\/a><\/ps-link>.&#8221;To that end, it is important that for each new regulation issued, at least 10 prior regulations be identified for elimination.&#8221;<\/p>\n<p>A host of hearings and confirmations have followed since then, including the appointment of <ps-link><u>Travis Hill<\/u><\/ps-link> as acting FDIC chair, <ps-link><u>Rodney Hood<\/u><\/ps-link> as acting comptroller of the currency for the Office of the Comptroller of the Currency and <ps-link><u>Scott Bessent<\/u><\/ps-link> as Treasury Secretary.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>Trump&#8217;s 100 days by the numbers<\/u><\/b><\/ps-link><\/p>\n<p>Credit unions aren&#8217;t exempt from these challenges either, as the <ps-link><u>recent firings<\/u><\/ps-link> of National Credit Union Administration Board Members Todd Harper and Tanya Otsuka create supervisory uncertainty.<\/p>\n<p>Democratic politicians in support of the dismissed board members called upon the NCUA&#8217;s inspector general to review Trump&#8217;s firing and furthermore, remarked that the agency lacks the necessary quorum on its board to conduct regulatory business. Trump appointee Kyle Hauptman is the sole remaining member of the NCUA board, which the <ps-link><a href=\"https:\/\/ncua.gov\/newsroom\/press-release\/2025\/ncua-releases-staff-message-current-ncua-board\" class=\"Link\" target=\"_blank\" rel=\"noopener\"><u>NCUA said<\/u><\/a><\/ps-link> is enough to operate as per a prior situation during the Bush administration.<\/p>\n<p>&#8220;In light of President Trump&#8217;s decision to fire two of the three Board Members without cause, we write to request information regarding the ability of the NCUA Board, and by extension the agency, to fulfill its mission with only one Board member,&#8221; Senator Elizabeth Warren, D-Mass., and Representative Maxine Waters, D-Calif., wrote in a letter.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>By firing Democrats, Trump takes NCUA into legal gray area<\/u><\/b><\/ps-link><\/p>\n<p>Dive into the recaps of regulatory moves below to better predict where each regulatory agency could be heading next.<\/p>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/5e6ccbe\/2147483647\/strip\/true\/crop\/4000x2668+0+0\/resize\/1024x684!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F5d%2Fde%2Fa790298142daa07dc57bb5bbac3f%2F432420131.jpg\">  <\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">Bessent continues to back interim FDIC chair, seeks permanent pick<\/h2>\n<p>The FDIC has been without a permanent chair for roughly four months, following the <ps-link><u>resignation<\/u><\/ps-link> of former FDIC Chair Martin Gruenberg and subsequent <ps-link><u>appointment of Travis Hill<\/u><\/ps-link> as interim chair on Jan. 20. Politicians have wasted no time peppering Treasury Secretary Scott Bessent with questions on delayed regulatory appointments, capital rules and more.<\/p>\n<p>During a House Financial Services Committee hearing earlier this month, Bessent defended the lengthy search period:\u00a0 &#8220;Mr. Hill is a very capable regulator, having been on the board of the FDIC.&#8221; While Hill&#8217;s unconfirmed stint in office might seem long at four months, a similar situation with the Office of the Comptroller of the Currency&#8217;s Acting Comptroller Michael Hsu <ps-link><u>went on for three years<\/u><\/ps-link>.<\/p>\n<p>&#8220;I am constantly reviewing the list and thinking who is best to lead that important institution \u2026 I think it&#8217;s very important to get these regulators in place,&#8221; Bessent said during the hearing.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>Bessent defends temporary FDIC chair, seeks permanent pick<\/u><\/b><\/ps-link><\/p>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/d1acb7e\/2147483647\/strip\/true\/crop\/6000x3999+0+0\/resize\/1024x682!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F63%2F2f%2F3865586e4a13b6d1d6c9609e5cdb%2F389698693.jpg\">  <\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">Powell could stay at the Fed past 2026, pending a title change<\/h2>\n<p>Federal Reserve Chair Jerome Powell isn&#8217;t set to leave the helm of the Federal Reserve until May 2026, but that hasn&#8217;t stopped questions from circulating about his tenure on the agency&#8217;s board of governors.<\/p>\n<p>Powell said during a press conference after the May 7 Federal Open Market Committee meeting that both his focus and the focus of his colleagues is all on &#8220;trying to navigate this tricky passage we&#8217;re in right now [and] trying to make the right decisions,&#8221; not on his departure plans for next year.<\/p>\n<p>While his term as Fed chair expires next year, and tradition has seen outgoing chairs depart the agency after their successor takes office, Powell can legally hold on to his governor seat until 2027 if he chooses to. <ps-link><a href=\"https:\/\/en.wikipedia.org\/wiki\/Marriner_S._Eccles\" class=\"Link\" target=\"_blank\" rel=\"noopener\"><u>Marriner S. Eccles<\/u><\/a><\/ps-link>, who was chair from 1934 to 1948, broke with precedent and stayed with the Fed until 1951.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>Powell leaves door open to staying at Fed past 2026<\/u><\/b><\/ps-link><\/p>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/1eed0aa\/2147483647\/strip\/true\/crop\/4365x2909+0+0\/resize\/1024x682!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F7b%2F36%2F20d19cfd46c185de242683a4f6f9%2F346458016.jpg\"> <\/p>\n<div class=\"Figure-content\"><figcaption class=\"Figure-caption\">Michelle Bowman, governor of the U.S. Federal Reserve.<\/figcaption><p>Zach Gibson\/Bloomberg<\/p>\n<\/p><\/div>\n<\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">Bowman nomination narrowly passes Senate Banking Committee<\/h2>\n<p>The Senate Banking Committee advanced <ps-link><u>Michelle Bowman<\/u><\/ps-link>&#8216;s nomination to become the next Federal Reserve vice chair for supervision by a narrow margin of 13-11 earlier this month.<\/p>\n<p>Bowman, currently a Fed governor, is predicted to clinch an affirmative vote from the full Senate with support from trade groups like the Independent Community Bankers of American and The Financial Services Forum, as well as many Republican changemakers. Other nominations greenlit by the committee touch the Department of Housing and Urban Development and the Treasury.<\/p>\n<p>&#8220;These nominees are not just capable but essential to our nation&#8217;s prosperity,&#8221; Senate Banking Committee Chairman Tim Scott, R-S.C., said in a statement. &#8220;Their roles demand accountability and expertise to protect American interests both at home and abroad.&#8221;<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>Senate Banking Committee advances Bowman nomination<\/u><\/b><\/ps-link><\/p>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/27a976e\/2147483647\/strip\/true\/crop\/4000x2667+0+0\/resize\/1024x682!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F07%2F74%2Fffe479474760aced858d31f70bce%2F427977346.jpg\">  <\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">Current CFPB frontrunner McKernan tapped for Treasury opening<\/h2>\n<p>The revolving door to the top of the Consumer Financial Protection Bureau could spin once again, as current frontrunner Jonathan McKernan was nominated for a role at the U.S. Department of the Treasury this month.<\/p>\n<p>McKernan is currently nearing the finish line to take office at the CFPB, but according to the Treasury Department is expected to also be nominated by President Donald Trump as its undersecretary for domestic finance, creating a regulatory quagmire as to which way McKernan will lean. McKernan has been working with the Treasury in an advisory capacity.<\/p>\n<p>&#8220;During that time, McKernan has become an integral part of the Secretary&#8217;s senior team. \u2026 His continued service at Treasury will ensure that his experience and expertise are best put to advancing the President&#8217;s America First agenda,&#8221; the Treasury Department said.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>McKernan tapped for Treasury post, CFPB future unclear<\/u><\/b><\/ps-link><\/p>\n<div class=\"Enhancement\" data-align-center=\"\">\n<div class=\"Enhancement-item\">\n<figure class=\"Figure\"> <img decoding=\"async\" src=\"https:\/\/arizent.brightspotcdn.com\/dims4\/default\/1498d1f\/2147483647\/strip\/true\/crop\/5742x3827+0+0\/resize\/1024x682!\/quality\/90\/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F7d%2F34%2Ffc8b74744318b3b58d98d574bbd6%2F398468716.jpg\"> <\/p>\n<div class=\"Figure-content\"><figcaption class=\"Figure-caption\">Todd Harper (right) former chair and board member of the National Credit Union Administration.<\/figcaption><p>Al Drago\/Bloomberg<\/p>\n<\/p><\/div>\n<\/figure>\n<\/div><\/div>\n<h2 class=\"cms-heading-h2 HeadingH2\">Ousted NCUA member heralds Fed purge following his dismissal<\/h2>\n<p>Todd Harper, former chairman and board member of the National Credit Union Administration, is warning that his dismissal and that of his colleagues is a &#8220;test case&#8221; for further layoffs at the Federal Reserve.<\/p>\n<p>&#8220;I think they&#8217;re chipping away so that they can get to the Federal Reserve Board,&#8221; Harper said to a crowd at the Brookings Institution on May 1. &#8220;And if you get to the Federal Reserve Board and start removing individuals, that affects monetary policy, and there are great risks to the economy, and [the NCUA, as well as] the Fed were set aside as independent for good reason \u2026 so I think they&#8217;re using us as test cases.&#8221;<\/p>\n<p>Harper and <ps-link><u>Tanya Otsuka<\/u><\/ps-link>, a board member who was appointed by former President Joe Biden to succeed outgoing board member Rodney Hood last year, were both <ps-link><u>fired by current President Trump<\/u><\/ps-link> in April. Current NCUA Chairman Kyle Hauptman is the sole official at the head of the agency.<\/p>\n<p><b>Read more: <\/b><ps-link><b><u>Ousted NCUA member warns firings are test run for Fed purge<\/u><\/b><\/ps-link><\/p>\n<\/div>\n<p><a href=\"https:\/\/www.americanbanker.com\/news\/new-trump-faces-at-fdic-fed-create-uncertainty-for-bankers\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Enjoy complimentary access to top ideas and insights \u2014 selected by our editors. From left: Scott Bessent, U.S. treasury secretary, President Donald Trump and David Sacks, White House Artificial Intelligence (AI) and Crypto czar.Chris Kleponis\/Bloomberg What you should know: As Fed Chair Jerome Powell&#8217;s term expires next year, the door opens for a Trump nominee<\/p>\n","protected":false},"author":1,"featured_media":15049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[218],"tags":[1252,633,605,27,137,563,2066],"class_list":{"0":"post-15048","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"tag-bankers","9":"tag-create","10":"tag-faces","11":"tag-fdic","12":"tag-fed","13":"tag-trump","14":"tag-uncertainty"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/15048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15048"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/15048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/15049"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}