The American Bankers Association and 51 state bankers associations today wrote to members of the FDIC board emphasizing the importance of an “independent FDIC and an orderly, transparent policymaking process.” The letter came after at least two FDIC board members last week said they had approved a request for public comment on the agency’s rules for bank mergers and acquisitions—an assertion that was later denied by the FDIC.
The associations reminded FDIC board members that “bank deposit insurance is the bedrock of financial stability, and actions that erode or interfere with the functioning of this critical agency create uncertainty and send signals that are harmful to banks, their customers and the U.S financial system.”
They added that “collegiality and a shared responsibility for maintaining market stability historically have overcome the forces that push and pull at non-independent agencies, allowing for gradual change. And when change comes, it is vital from a governance and regulatory expectations standpoint that federal banking agencies not create ambiguity about what constitutes an official action.” The FDIC board is scheduled to meet tomorrow at 10 a.m. EST.