Deposit insurer’s board meeting opens opportunity for two newest members to attend

The 2018 operating budget for the insurer of savings in the nation’s banks and savings associations will be under consideration when its board meets Tuesday – which may include a first appearance in that role by its two newest members.

The board of the Federal Deposit Insurance Corp. (FDIC) has set its meeting for 10 a.m. Dec. 19 at agency headquarters in downtown Washington. One of its newest member – by reason of his position – is Consumer Financial Protection Bureau (CFPB) Acting Director Mick Mulvaney. He was appointed by President Donald Trump last month to succeed bureau Director Richard Cordray, who resigned.

Mulvaney was appointed to his position by Trump under the auspices of the Federal Vacancies Reform Act of 1998 (FVRA), which gives the president the power to appoint replacements for federal leadership vacancies.

However, before stepping down, Cordray named Leandra English, the agency’s chief of staff, to be deputy director – essentially positioning her to succeed Cordray as director.

Under the law establishing the bureau (the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or Dodd-Frank) the deputy director – who is “appointed by the Director” — serves as acting director “in the absence or unavailability of the director.”

English last month challenged Mulvaney’s appointment in federal court which ruled – on a request by English for a temporary injunction — that (at least for now) Mulvaney is the rightful leader of the agency. English, however, has continued to challenge Mulvaney’s appointment. An additional U.S. District Court hearing is scheduled for Dec. 22.

Also perhaps making his first appearance at an FDIC Board meeting: new Comptroller of the Currency Joseph Otting (also by reason of the office he holds), who was sworn into office last month.

As for the FDIC operating budget: a year ago, the agency adopted a $2.1 billion plan that it said was 2.4% lower than the 2016 spending outline. Total staffing for the 2017 budget is 6,363 full-time equivalent (FTE) positions (5,980 permanent, 383 non-permanent), down 170 positions (net) from the previous year.

FDIC schedules Dec. 19 board meeting