Rep. Waters urges FDIC chair to seek public input on bank merger review process

U.S. Rep. Maxine Waters (D-CA), chairwoman of the U.S. House Financial Services Committee, expressed concerns over Federal Deposit Insurance Corp. (FDIC) Chairman Jelena McWilliams’ attempts to block the FDIC Board Majority from seeking the public’s input on the bank merger review process.

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In a Dec. 21 letter to McWilliams, Waters asked the FDIC chair to cite the legal authority she’s using in her attempt to allegedly block the public input sought by the board.

“I write to express my concern regarding your attempts to apparently disavow and block a sensible Request for Information (RFI) approved by a majority of the Federal Deposit Insurance Corporation’s (FDIC) Board of Directors regarding the agency’s outdated rules, regulations, guidance, and statements of policy on bank merger transactions,” Waters wrote. “Moreover, despite the bipartisan support for promoting competition and the need to modernize outdated bank merger review procedures that, at a minimum, do not reflect current law, I am disappointed that you would seek to deny the public an opportunity to provide their feedback on ways the FDIC’s bank merger review procedures could be strengthened as envisioned by the Board. Accordingly, I ask that you promptly cite the legal authority and provide any legal analysis that you are relying on in your attempt to unilaterally block the will of the majority of the FDIC Board to carry out the agency’s responsibilities.”

Waters is urging McWilliams to reconsider her position and collaborate with board members and other regulators to improve bank merger review procedures.