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The Wall Street Journal: Democrats set to control FDIC after Trump-appointed chair steps down

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WASHINGTON — Jelena McWilliams’s decision to resign as chairman of the Federal Deposit Insurance Corp. paves the way for Democrats to gain control of the agency’s agenda in the coming weeks, potentially leading to more-stringent requirements around bank tie-ups, climate change and other matters.

McWilliams, a Trump administration holdover, said Friday that she planned to step down, following a public fight with Democrats who now make up a majority of the FDIC board. The move comes after McWilliams had previously said she intended to serve out her full term, which lasts through mid-2023.

In a letter to President Joe Biden released by the FDIC, McWilliams said her resignation would be effective Feb. 4. The letter made no mention of board disputes.

The FDIC supervises thousands of small banks, handles bank failures, insures the nation’s bank deposits and reviews wind-down plans of the largest U.S. banks in the event of their failure.

McWilliams’s resignation comes after Democratic members of the FDIC last month voted to launch a regulatory process related to bank mergers without the support of McWilliams, who blocked the request from being published by her agency.

An expanded version of this report appears on WSJ.com.

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