https://www.wsj.com/articles/the-senator-elizabeth-warren-biden-bank-heist-fdic-jelena-mcwilliams-rohit-chopra-gruenberg-khan-cfpb-federal-reserve-nominee-11641155812?mod=opinion_lead_pos1
Elizabeth Warren finally got her woman—that is, the Senator and her many acolytes in the Biden Administration have succeeded in ousting Jelena McWilliams as chair of the Federal Deposit Insurance Corp. The coup deserves attention because of its norm-breaking precedent and what it signals for bank mergers and supposedly independent regulatory agencies.
Ms. McWilliams resigned on Dec. 31, effective Feb. 4, to avoid more turmoil at the bank regulator. But as she wrote in these pages on Dec. 16, her resignation comes amid a concerted and unprecedented political effort to strip her of authority before her term as chair expires in June 2023.
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The coup has been led by Rohit Chopra, the Warren protege who now runs the Consumer Financial Protection Bureau and is one of four current members of the FDIC board (one post is vacant). The FDIC’s longstanding practice and bylaws, based on its interpretation of the law, is that the chair sets the board’s agenda.
Every administration for 88 years has honored that understanding, including the supposedly norm-breaking Trump Administration. Democrat Martin Gruenberg was allowed to continue as chair until June 2018 after President Trump took office, and no one attempted to oust him.
Enter the Warren-Biden progressives in a hurry. The Senate confirmed Mr. Chopra on Sept. 30 on a 50-48 vote, and as soon as Oct. 31 he presented Ms. McWilliams with a request for information (RFI) on bank mergers. When she said the draft RFI would have to be vetted by FDIC staff, Mr. Chopra publicly released his own RFI without authority from his post at the CFPB, which the FDIC was obliged to contradict.