Gruenberg, FDIC board members confirmed by Senate

WASHINGTON — The full Senate confirmed Martin Gruenberg as the chairman of the Federal Deposit Insurance Corp. in a 45-39 vote. 

The chamber also added two Republicans — Travis Hill as its vice chairman and Jonathan McKernan as an FDIC board member — by a voice vote, giving the agency a full five-member board for the first time since 2015. 

It’s Gruenberg’s second time serving as a Senate-confirmed chairman of the agency, and gives him and the Democratic majority further cover to pursue policies such as tightening up bank merger approvals and the resolution plans of large regional banks, and insulating the banking system from the volatility of the cryptocurrency market. 

Martin Gruenberg, acting chair of the Federal Deposit Insurance Corp. and nominee for chair, was confirmed by the Senate Monday night in 45-39 vote. Travis Hill, center, and Jonathan McKernan, right, were confirmed as vice chairman and member of the FDIC board, respectively.

Amanda Andrade-Rhoades/Bloomberg

Gruenberg’s confirmation also marks a victory for Democrats, who have struggled to get their banking agency appointees through the Senate nomination process. Gruenberg, a longtime FDIC board member, is now in a stronger position to shepherd some of the Democrats’ priorities through the rulemaking process. 

“Since joining the FDIC Board, Mr. Gruenberg has served as chairperson, vice chairperson, acting chairperson, and member,” Senate Banking Committee Chairman Sherrod Brown, D-Ohio, said in a speech before the votes for the nominees. “Take a minute and think about that: chairperson, vice chairperson, acting chairperson, and member. I have served on the Banking Committee since 2007. I do not remember any FDIC nominee having come before the committee with that level of expertise.” 

The Senate vote also ends a dramatic leadership saga at the agency. Republicans, during the Senate Banking Committee’s nomination hearing for Gruenberg and the two other nominees, pressed Gruenberg on the departure of Jelena McWilliams amid a partisan fight on bank merger policy. With the Department of Justice’s memo describing the Democrat board members’ actions as lawful, and with Gruenberg Senate-confirmed, there’s little oversight power remaining to Republicans either in the courts or in Congress to continue rehashing the issue. 

The White House also confused policy watchers earlier this year, announcing Hill’s nomination for vice chairman before putting forward a chairman. Because of the structure of the FDIC board, the Biden administration had to nominate Gruenberg, or another Democrat, to the chairmanship, or the vice chairman would lead the agency. 

Sen. Pat Toomey, R-Pa., the Senate Banking Committee’s outgoing ranking member, applauded the confirmation of McKernan, who worked in Toomey’s office. 

“Jonathan McKernan is highly qualified to serve as a Member of the Board of Directors at the FDIC,” Toomey said. “I know firsthand that his knowledge of banking and housing finance issues will equip him well to serve on the FDIC board, and I’m confident that the agency will count both his thoughtful approach and his depth of knowledge as great assets.”

Toomey also praised Hill’s experience, which counts among it a stint as McWilliams’ policy chief. 

“Travis Hill’s significant experience in both the legislative and executive branch will deepen the FDIC board’s expertise and enhance the quality of its deliberations,” Toomey said. “Based on that experience, I am confident that Mr. Hill will faithfully carry out the FDIC’s mission of maintaining stability and public confidence in the nation’s financial system.”