Palmetto State News

At a nominations hearing today, U.S. Senator Tim Scott (R-S.C.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, scrutinized the records of President Biden’s nominees for financial regulator positions. Senator Scott criticized current FDIC Chair Martin Gruenberg's leadership and highlighted issues within the agency's workplace culture.

Senator Scott stated that Gruenberg’s nearly two decades at the helm have allowed harassment and discrimination to persist. He emphasized the need for Gruenberg to step down immediately to begin reforming the agency. Expressing doubts about Christy Goldsmith Romero’s qualifications if confirmed as Gruenberg’s successor, Scott questioned her expertise in handling the FDIC's critical responsibilities.

Additionally, Senator Scott criticized Caroline Crenshaw’s views on SEC authority, particularly regarding climate disclosure rules. He cited her belief that these rules did not go far enough and raised concerns about her stance on expanding SEC authority over private markets.

In his opening remarks, Senator Scott said: "Thank you, Mr. Chairman. And thank you to the nominees for being here with us this morning."

Scott continued by addressing Gruenberg's tenure: "Chairman Gruenberg has been at the helm of the FDIC for nearly two decades. And under his leadership tenure, he’s allowed rampant harassment, discrimination, and vile behavior to continue to flourish."

He called for immediate resignation: "Mr. Gruenberg should resign immediately... Without that action, it is frustrating to the American people... that Mr. Gruenberg refused to do the right thing."

Regarding Goldsmith Romero's nomination, Scott remarked: "While you’ve had a long career in public service, your background lacks the bank regulatory experience necessary to carry out the critical responsibilities of the FDIC."

Turning his attention to Crenshaw’s re-nomination for an additional term at SEC ending in June 2029: "Commissioner Crenshaw... I have significant reservations over your nomination based on your views of what appears to be limitless authority of the SEC."

Scott concluded by criticizing what he perceives as political motivations behind these nominations: "I find it incredibly frustrating that we find ourselves here today—as this is a prime example of the Biden administration’s M.O. of politics over people."

The hearing continues as nominees respond during questioning sessions.