Sen. Elizabeth Warren (D-Mass.) voiced her support for Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero after President Biden announced on Thursday that she would nominate her to lead the Federal Deposit Insurance Corporation (FDIC), replacing outgoing Chairman Martin Gruenberg.
“She’s exactly what the FDIC needs,” Warren told reporters on Capitol Hill on Thursday.
“She’s a strong, independent woman. Bankers may not like her,” Warren added, referring to Romero’s experience as inspector general for the Troubled Asset Relief Program, or TARP, the hundreds of billions of dollars of bailout money given to big banks during the 2007-08 financial crisis and recession.
“She has the independence we want from regulators,” Warren said. “She won’t constantly be policing who has money or influence. She’ll do what the law says without fear or favoritism. She’s the kind of woman I like.”
As special inspector general for TARP, Romero oversaw 406 criminal indictments against financial industry figures. 2017 Congressional ReportThis included 55 bankers, one trader, 68 bank borrowers and 83 “homeowner fraudsters”.
Romero’s White House nomination came after Grunberg announced his intention to step down as FDIC chairman last month. A series of Bomb Last year’s report The Wall Street Journal article detailed a toxic workplace culture at the agency he led that was rife with sexual harassment, misconduct and retaliation.
Grunberg, a Democrat nominated by President Biden in 2023, had served as FDIC director since 2005 but ultimately bowed to pressure from lawmakers in both parties and stepped down from his role once his replacement was confirmed by the Senate, leaving some of the administration’s banking regulations in limbo, including the controversial “Basel III endgame” international banking regulations.
The Senate must approve Romero’s nomination, but Warren expressed confidence she would have the support of Democrats, who currently hold a majority in the Senate.
The Massachusetts senator has been an outspoken critic of big banks and has called for major reform of the banking system, including raising the FDIC limit and cracking down on bank mergers.
