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"The Senate Banking Committee will consider the nomination of Christy Goldsmith Romero to chair the Federal Deposit Insurance Corp. on July 11, the panel announced.
Goldsmith Romero, who currently sits on the board of the Commodity Futures Trading Commission, was just recently announced as the Biden administration's pick to lead the FDIC in the wake of a workplace misbehavior scandal at the agency.
The committee, in the same hearing, will also consider the nominations of Caroline Crenshaw to be a member of the Securities and Exchange Commission, Kristin Johnson to be assistant secretary of financial institutions at the Treasury Department and Gordon Ito to be a member of the Financial Stability Oversight Council with expertise in insurance."
"Technology has changed the way financial services companies operate. As financial institutions innovate and develop new solutions, an unfortunate side effect of the banking industry's growth is that some communities have been marginalized or ignored.
Community Development Bankers Association (CDBA) began in the early 2000s and is the national trade association of the community development bank sector. The organization has enjoyed stable leadership — Jeannine Jacokes has been CDBA's CEO since it began.
The association started shortly after the establishment by the U.S. Treasury Department of the Community Development Financial Institutions (CDFI) Fund, which offers community development banks resources and programs that invest federal dollars to help them support economically disadvantaged communities."
"President Joe Biden's appointment of Christy Goldsmith Romero to head the Federal Deposit Insurance Corp. will put the longtime regulator atop a powerful agency that's been torched by findings of rampant harassment and toxic behavior.
If she's approved by the Senate, repairing that culture will be her first job. But she'll also be tasked with policing more than 4,500 banks that hold about $24 trillion in assets. And if you know Goldsmith Romero, you know she takes a dim view of regulators who downplay their enforcement responsibilities.
Here's how Goldsmith Romero once described her responsibilities as special inspector general for the Troubled Asset Relief Program, the massive government bank rescue operation where she was charged with leading 140 people (including 85 special agents) who investigated fraud, waste and abuse at financial institutions:
'I knew that we could not turn to the bank regulators to point us to the fraud,' she said, describing her efforts to develop 'innovative techniques' to identify bad behavior. In some cases, she said, 'bankers have been going to jail and being sentenced to prison.'"
"After a huge infusion of capital from the Treasury Department, community development financial and minority depository institutions needed deposits. A lot of deposits. So, they banded together to create a program for socially minded investors seeking to make an impact while ensuring their funds are safe.
'This is a new-money program,' said Brian Argrett, CEO of the Washington, D.C.-based City First Bank. 'It opens the window to start a deposit relationship and then to be able to figure out, in collaboration with that depositor, how else we can satisfy our mutual goals, particularly within the local market, low-and-moderate-income communities and communities of color.'"
The House Appropriations Financial Services and General Government Subcommittee has approved the Fiscal Year 2025 Financial Services and General Government Appropriations Act. The top line for the CDFI Fund is $276.6 million, which is approximately $48 million below the FY 24 enacted levels and the FY 25 budget request. Within that total, the draft bill recommends reductions for Bank Enterprise Award, FA/TA funding, Small Dollar loans, and no funding for Healthy Food Financing and Economic Mobility. NACA appropriations increase by $ 10 million.