Christy Goldsmith Romero Testifies Before Senate Banking Committee

New FDIC Chair Nominee Vows to Overhaul Workplace Culture

Christy Goldsmith Romero, the nominee for the position of Federal Deposit Insurance Corp. (FDIC) chair, testified before the Senate Banking Committee on Thursday, pledging to prioritize a complete overhaul of the agency’s workplace culture if confirmed.

Goldsmith Romero expressed her commitment to addressing reports of a workplace environment at the FDIC that tolerated sexual harassment, stating, “It must not continue, and I will bring accountability through investigations and disciplinary actions.”

During the hearing, Goldsmith Romero highlighted the findings of the recent Cleary Gottlieb report on the FDIC’s workplace culture, stating that the conduct described in the report would warrant multiple removals. She acknowledged that addressing issues at individual field offices would be a larger challenge that would require more time.

Goldsmith Romero, who was nominated by President Joe Biden in June to replace Martin Gruenberg as FDIC chair, has a background in financial regulation, having served as a commissioner with the Commodity Futures Trading Commission and leading the Office of the Special Inspector General for the Troubled Asset Relief Program at the Treasury Department.

During her tenure at SIGTARP, Goldsmith Romero oversaw actions against Wall Street bankers in the aftermath of the 2008 financial crisis, aiming to restore confidence in the banking system through accountability and transparency.

Goldsmith Romero faced questions from senators about her management approach and workplace complaints during her time at SIGTARP. She emphasized that there was only one finding against the agency early in her tenure, which was promptly addressed.

If confirmed as FDIC chair, Goldsmith Romero plans to focus on heralding those who uphold standards of professionalism and respect, similar to her approach at SIGTARP. She emphasized the importance of setting clear expectations for acceptable behavior to drive cultural change within the agency.

Democrats have shown support for Goldsmith Romero’s nomination, citing her experience in financial regulation and her commitment to addressing the FDIC’s long-standing issues. However, some concerns have been raised about her lack of experience in bank supervision and prudential policymaking.

Goldsmith Romero’s nomination comes at a critical time for the FDIC, as the agency faces scrutiny over its workplace culture and ongoing misconduct allegations. If confirmed, she will be tasked with implementing reforms to ensure a more transparent and accountable environment at the FDIC.