Biden announces nomination for FDIC chair

President Joe Biden nominated Christy Goldsmith Romero to chair the FDIC. Romero, who must first be confirmed by the Senate, is being tapped to replace Martin Gruenberg, who announced he would retire once a new chair is appointed following allegations he contributed to a toxic atmosphere at the agency. 

A Democrat, Romero, 53, has been a commissioner at the Commodity Futures Trading Commission since March 2022, and spent the previous dozen years at the Treasury Department. Romero is a former law professor at Georgetown University Law Center and University of Virginia Law School.  

Romero’s June 13 nomination came approximately one month after New York City-based law firm Cleary Gottlieb found the FDIC failed to protect employees from sexual harassment, discrimination and other workplace misconduct. Gruenberg allegedly displayed an explosive temper at times, leading some staff to fear delivering bad news to him.

The report included interviews with more than 500 current and former FDIC employees, and was commissioned followed a November Wall Street Journal article chronicling numerous allegations of sexual harassment and other workplace misconduct at the FDIC. The report found the agency’s “patriarchal, misogynistic and insular culture” and “good-old-boys club” created the conditions for misconduct to flourish.  

Cleary Gottlieb did not call Gruenberg to resign, though the law firm acknowledged his lengthy tenure at the FDIC could complicate work to improve the culture. The law firm was overseen in the process by a special committee of the FDIC board. 

Sen. Sherrod Brown (D-Ohio), who chairs the Senate Committee on Banking, Housing and Urban Affairs, said in a statement following Romero’s nomination that she “has proven herself to be a strong, independent and fair regulator who is not afraid to do what’s right. I call on the entire Banking and Housing Committee, Senate leadership, and the full Senate to move quickly to bring new leadership to the FDIC at this challenging time.” 

House Financial Services Committee Chair Patrick McHenry (R-N.C.), said Gruenberg’s successor “must be prepared to hit the ground running to implement the Cleary Gottlieb recommendations and end the egregious misconduct that has come to define the agency during his tenure … The Senate must move forward with confirmation proceedings expeditiously to curtail Chair Gruenberg’s ability to further damage the agency and endanger financial stability.”  

Romero’s nomination came one day after House Financial Services Committee Republicans called for Gruenberg’s immediate resignation during a contentious, nearly four-hour committee meeting. Republicans questioned whether Gruenberg’s reported temper has prevented staff from informing him of difficult news and of achieving the FDIC’s mission. 

Gruenberg, 71, was appointed FDIC chair last year. He previously served as FDIC chair from 2012-18, as well as on an acting basis from 2005-06 and 2011-12. If Gruenberg resigns before a new chair is appointed, FDIC Vice Chair Travis Hill, a Republican, would hold the position in an interim capacity. 

Democratic committee members focused on Cleary Gottlieb’s findings that the FDIC’s cultural problems span multiple administrations and accused Republicans of having a double standard for allegations of sexual misconduct, citing their ongoing support for Presidential candidate Donald Trump despite his recent conviction on 34 felony counts for falsifying business records relating to his paying off Stormy Daniels after she alleged they had an extramarital affair nearly 20 years ago.