A top U.S. banker appointed by former President Donald Trump announced Friday that he was stepping down, paving the way for Biden’s management to establish a direct financial system.
Jelena McWilliams, who has been chairman of the Federal Deposit Insurance Corporation since June 2018, said she left the agency on February 4, more than a year earlier than when her term had expired.
The decision comes in the wake of a dispute between the FDIC’s top management, which protects money laundering, and the Consumer Financial Protection Bureau, the US Consumer Protection Agency, over reviewing bank mergers.
What led McWilliams to protest against FDIC board member Martin Gruenberg and Rohit Chopra, director of CFPB, both Democrats. Gruenberg and Chopra voted as part of a larger democracy to reform the banking system, which McWilliams opposed.
McWilliams in detail a controversy in the minds of The Wall Street Journal in early December, calling what is happening “unprecedented”.
“The dispute is not about mergers. In that case, board members would be willing to work with me and FDIC staff instead of trying to undermine FDIC internal processes, partners and boards, “he wrote. to change its management. “
In his resignation letter to President Joe Biden, McWilliams said it was “a great honor” to be the leader of the FDIC and to emphasize the resilience of the economy through the financial crisis of the past year.
“The unexpected downturn in Covid-19 tested the strength of the financial system since March 2020, and the FDIC has taken immediate action to stabilize and provide flexibility for banks and consumers,” he wrote. “Our economic goal was not only to fight the storm, but also to be a real source of strength for the American economy.”
Prior to joining the FDIC, McWilliams served as a senior adviser to the Senate committee on banking, real estate and urban affairs and previously served as a lawyer for the Federal Reserve Board of Governors.
With his departure, Biden has another open space to fulfill. The post of chief executive officer of a major US bank is still vacant following the end of the Randal Quarles term in October.
Former Fed Ambassador, who on the left the entire organization in December, was elected by Trump in 2017.
Quarles was criticized by the Democratic Party’s progressive wing for weakening the rules and regulations that restrict banks due to the global financial crisis.
FDIC officials and vice-chairman of the Fed are expected to hold firm views on financial matters.