Dems to gain control of key bank regulator after Trump appointee resigned on New Years Eve: report
FDIC

Donald Trump's residual grip on some areas of American government will dissipate on February following a surprise New Year's Eve resignation by a Trump holdover.

"Federal Deposit Insurance Corp. Chairman Jelena McWilliams on Friday unexpectedly submitted her resignation after the Trump appointee faced partisan strife at the bank regulator, in a move that will give Democrats control of the agency in the coming weeks," Politico reported Friday. "Her departure, effective Feb. 4, means that FDIC board member Martin Gruenberg will become acting chair, his third stint atop at the 88-year-old agency, which insures trillions of dollars in deposits at the nation’s banks."

In a resignation letter, McWilliams praised the FDIC response to the pandemic.

"Earlier this month, the Democratic majority on the FDIC’s board voted to take public feedback on potential changes to the agency’s bank merger approval process. McWilliams did not participate in the vote, and the FDIC in an official statement said the action was not valid. A legal debate ensued over whether a majority of the board can put items up for a vote without the consent of the chair, with Democrats maintaining they had clear authority," Politico reported. "At a board meeting that was livestreamed, McWilliams rejected a bid by Consumer Financial Protection Bureau Director Rohit Chopra — an FDIC board member and ally of Sen. Elizabeth Warren (D-MA) — to add a record of the vote to the FDIC’s official minutes."

Read the full report.