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Senate approves Obama nominations to FDIC board

Martin Gruenberg

The Senate approved President Obama’s nominations to major banking agencies involved in implementing Dodd-Frank financial reforms on Thursday, including the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

Thomas Curry will head the OCC, while Martin Gruenberg, JPMorgan Chase & Co. financial advisor Jeremiah Norton and former Kansas City Federal Reserve Bank President Thomas Hoenig will assume positions on the FDIC board, Reuters reports.

President Obama originally nominated Gruenberg to the position of FDIC chairman and Hoenig to the position of vice chairman. The Senate, however, would only approve their appointments as board members.

Currently, both Curry and Gruenberg are FDIC board members. Thomas Curry is the current director of the FDIC and Gruenberg took over as acting chairman after the resignation of former FDIC chief Sheila Bair.

While the appointments require another vote to be finalized, Gruenberg will retain the position of acting chairman for the FDIC during the interim period. Gruenberg expressed confidence in the speedy confirmation process.

“The Senate confirmation of the three pending FDIC nominees gives the [FDIC] a complete five-member board and provides additional stability and continuity moving forward,” Gruenberg said, according to Reuters. “This is an important step as the FDIC continues to respond to a number of challenging issues and continues with the rulemaking process.”

The remaining board position will be assumed by Consumer Financial Protection Bureau Director Richard Cordray.

The FDIC is primarily in charge of regulating smaller community banks, but following the passage of Dodd-Frank, the agency is also in charge of overseeing and liquidating large financial institutions.

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