Christy Goldsmith Romero, a Democratic commissioner at the Commodities Futures Trading Commission (CFTC), is being nominated by the White House to become the Federal Deposit Insurance Corporation’s (FDIC) next chair. This decision comes after it was discovered that there was rampant sexual harassment and wrongdoing within the highest levels of the banking regulator, which led to the impending departure of Martin Gruenberg. President Joe Biden’s regulatory agenda is intended to be advanced by Goldsmith Romero’s appointment, with a particular emphasis on large increases in bank capital requirements. The fact that there are only six months until the US presidential election makes this nomination even more urgent.
There are still unknowns surrounding the confirmation process, such as when the Democratic senator Sherrod Brown will chair Senate hearings. As Assistant Secretary for Financial Institutions at the Treasury Department, Kristin Johnson, a fellow Democratic commissioner at the CFTC, is anticipated to receive a nomination alongside Goldsmith Romero’s.
The White House has refrained from making official comments on the nominations, and representatives from Brown’s office, Treasury, and the FDIC have yet to respond to requests for comment outside regular business hours. Similarly, the CFTC has declined to provide any comment on the matter.
According to sources familiar with the situation, Johnson’s confirmation hearing will coincide with Goldsmith Romero’s. Johnson had been earmarked for the Treasury role prior to Gruenberg’s resignation, which came about under political pressure.
Gruenberg, also a Democrat, has agreed to stay in his position until his successor is confirmed by the Senate. This ensures Democratic control over the agency at least until January of next year, which is crucial given the impending election and its implications for power balance.
However, time is of the essence, with the Senate scheduled to be in session for only half of July, followed by an extended recess through Labor Day in September. This leaves a narrow window of approximately two months for the Senate to confirm nominations before the November elections, during which incumbent Senators typically focus on their re-election campaigns.
Reports indicate that the formal announcement of Romero’s nomination could be imminent. Various news outlets have speculated on the timing of the White House’s official statement, with The Wall Street Journal anticipating an announcement this week and Punchbowl News suggesting a potential Thursday announcement for Romero’s nomination.
Sources with knowledge of the matter have revealed that Kristin Johnson’s confirmation hearing will take place concurrently with Christy Goldsmith Romero’s. Political pressure had forced Gruenberg to retire, but not before Johnson was mentioned as a potential Treasury position.
Gruenberg, also a Democrat, has agreed to remain in his position until his successor is confirmed by the Senate. This decision ensures that the Democrats retain control over the agency at least until January of the following year, a critical consideration given the impending election and its potential impact on the balance of power.
However, time is of the essence, with the Senate scheduled to be in session for only half of July, followed by an extended recess through Labor Day in September. This leaves a narrow window of approximately two months for the Senate to confirm these nominations before the November elections. During this period, incumbent Senators typically prioritize their re-election campaigns over legislative matters in Washington.
Reports from credible sources indicate that the formal announcement of Christy Goldsmith Romero’s nomination could be imminent. Various media outlets have speculated on the timing of the White House’s official statement, with The Wall Street Journal suggesting that an announcement could be expected as early as this week, while Punchbowl News has hinted at a potential Thursday announcement specifically for Romero’s nomination.
