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Confirmed nominations for FDIC Board Seats

Yesterday the U.S. Senate finally voted on the nominations of Martin Gruenberg, Thomas Hoenig and Jeremiah Norton to serve on the Board of Directors of the FDIC. 
 
In an unusual move, however, the Senate voted only to confirm these three nominees to seats on the FDIC board. It did not confirm Gruenberg as Chairman of the FDIC, nor did the Senate approve Hoenig as Vice Chairman. 
 
The Senate also approved Thomas Curry as Comptroller of the Currency. He will continue to serve as a member of the FDIC Board in that capacity.
 
Gruenberg will continue to serve as Acting Chairman of the agency, which left many observers a bit confused about what was going on. The best guess at this point is it was a compromise between Senate Democrats and Republicans to fill out the Board, but to leave Gruenberg (a Democrat) in an acting capacity in the event Republicans take the White House in November and would, therefore, be able to appoint someone else to serve as FDIC Chairman.
 
Some Senate Republicans are still smarting over the President's “recess appointment” of Richard Cordray to serve as Director of the Consumer Financial Protection Bureau. But this maneuver gives Gruenberg the authority to continue to lead the FDIC and enables Republicans to hedge their bets on the results of the November elections.
 
In a statement issued following Senate action, Gruenberg said, "The Senate confirmation of the three pending FDIC nominees gives the Corporation a complete five-member board and provides additional stability and continuity moving forward.
 
"This is an important step as the FDIC continues to respond to a number of challenging issues and continues with the rulemaking process," he added. "I welcome the two new internal directors to the FDIC — Thomas Hoenig and Jeremiah Norton — and look forward to working with them as I continue in my role as Acting Chairman. I would also like to recognize Tom Curry for his dedicated service to the FDIC and am very pleased that we will continue to work together in his capacity as Comptroller of the Currency and FDIC board member."
 

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