FDIC chairman will stay on post until successor confirmed

FDIC Chairman Martin Gruenberg (left) responds to questions from Brookings’ Aaron Klein.

Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg said he intends to remain in his post until his successor is confirmed by the Senate, he told a Washington group Tuesday.

Speaking at the Brookings Institution, Gruenberg referred to his desire to remain at the head of the bank deposit insurer as “not a shocker,” and referred to the Federal Deposit Insurance Act as giving him the flexibility to remain in his post.

Gruenberg’s five-year term ends at the end of November.  President Donald Trump has not yet named a successor to the post.

In other comments during a question and answer session, the FDIC chairman said:

  • Risk-based capital has a role to play, but a capital structure that combines risk-based and a leverage ratio “is the best foundation for a capital system.”
  • The banking system is in a position of strength as he nears the conclusion of his 12-year tenure at the FDIC, and can “support the economy.”
  • As evidence, he said that banking activity is strong and meeting market demand. “There is no evidence of a supply issue, but there is an issue of demand,” he said. “The industry is positioned to meet the demand.”
  • Today’s financial system is “interconnected” internationally — “that is not reversible,” he said.