H.R. 3446: FDIC Board Accountability Act

The FDIC Board Accountability Act proposes several changes to the governance structure of the Federal Deposit Insurance Corporation (FDIC), which is responsible for protecting depositors in U.S. banks. The main aspects of the bill include:

Board Composition Changes

• Current rules about who can be appointed to the FDIC Board will be revised.
• The bill specifies that out of the individuals appointed to the Board by the President, four must have prior experience in banking regulation or supervisory roles with banks, particularly those that are smaller, having total assets under $10 billion.
• A non-voting observer position will be created for the Director of the Bureau of Consumer Financial Protection on the FDIC Board, allowing them to attend meetings without having a voting say.

Term Limits

• The Act introduces term limits for members of the FDIC Board. No individual can serve more than two terms in total.
• Furthermore, there is a cap on the overall service, stating that no individual can serve more than twelve years on the Board.

Terminology Updates

• The title of the agency known as the Consumer Financial Protection Bureau will be officially referred to as the Bureau of Consumer Financial Protection in the FDIC documentation.
• Clarifications in language will be made to ensure consistent terminology regarding the roles of Board members and the new observer position.

Overall Purpose

The bill aims to enhance accountability and ensure that the Board members of the FDIC have relevant experience. By implementing term limits and redefining roles, the legislation seeks to promote effective governance within the FDIC.

Relevant Companies