US president Trump has made another nomination of a key official to supervise the post-crisis regulatory framework overhaul. Trump has nominated Jelena McWilliams to lead the Federal Deposit Insurance Corporation. McWilliams is an in-house attorney at Ohio’s biggest bank. Since he took office in January, President Donald Trump has appointed friendly faces at the leading regulatory agencies.
They include Randy Quarles, a former executive at a private equity firm to the position of an advisor at the Federal Reserve. Trump has also appointed a former banker, Joseph Otting, at the Comptroller of Currency’s office. The nomination of McWilliams will be consistent with the trend of Presidential appointments. MS Williams is set to be a Chief Legal Officer of the Fifth Third Bancorp based in Cincinnati.
Ms. McWilliams has held senior positions with the US Senate Committee and the Fed on Banking, housing, and urban affairs before going to Fifth Third at the beginning of this year. Officials holding senior government positions have been consistently criticizing the reforms that were put in place after the financial crisis of 2008. One such critic is Steven Mnuchin, Secretary of the Treasury, who has blamed micro-managing supervisor s and heavy regulation for the slow economic recovery for the last ten years.
Mr. Quarles and Mr. Otting have resonated the same thoughts. The President’s nominee for the Chairperson of the Fed, Jerome Powell, stated that there was plenty of room to loosen the regulations for the community and regional banks. Since the White House’s original nominee for the FDIC job, James Clinger, withdrew, the Trump administration has been keen on filling up the vacant job position. The incumbent, Martin Gruenberg’s five-year term ended in November.
At the end of the month of June, the Fifth third had $139 billion in assets and was ranked at 15th place all across America. This was according to data from FDIC ahead of KeyCorp Cleveland and just behind Goldman’s banking arm. Ms. McWilliams served on the Senate banking Panel for Richard Shelby and Mike Crapo, Idaho and Alabama Republican Senators respectively. These two senators are sharp critics of the 2010 Dodd-Frank Act which was Obama era’s landmark legislation in the financial sector.
McWilliams practiced securities and corporate law in Washington at Morrison and Foerster before joining public service. According to Vertical Group’s veteran bank analyst Dick Bove, if Ms. McWilliams is confirmed for the position, it will be a thorough clean out of the Obama administration in the financial sector.