GOP House Fin-Services Cmte To Use "Full Arsenal" In FDIC Investigation

Republicans on the House Financial Services Committee has issued a letter to Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg, announcing that they will be using the committee's, "full arsenal of oversight and investigative tools, including compulsory mechanisms," in an upcoming investigation into, "alleged widespread and entrenched misconduct," and "toxic work environment" at the FDIC.

• The letter says the Committee, "has serious concerns that these workplace issues affected the agency’s ability to oversee the banking system."
• It concludes: "Chairman Gruenberg, the viability of your leadership is in question... The Committee will use its full arsenal of oversight and investigative tools, including compulsory mechanisms, to ensure that our banking system remains safe and sound."
• Punchbowl News reported this morning: “Banking industry insiders don’t expect Gruenberg to resign in the near term,” [but the] "crisis could pose serious problems for the Biden administration while handing an immense political victory to the U.S. banking sector."
• Punchbowl notes that, due to the nature of the FDIC five-member board of directors, “Gruenberg is effectively a deciding vote on any controversial rulemaking, which includes the Biden administration’s Basel III capital proposal... If the FDIC is left without a fifth board member, a 2-2 vote would stall, and probably doom, politically sensitive banking policy."