On February 10, four U.S. senators wrote to the FDIC OIG to request an evaluation of the impact of the FDIC Acting Chairman’s decision to rescind over 200 job offers to bank examiners. Sens. Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Lisa Blunt Rochester (D-DE) expressed concerns that the Acting Director’s decision could undermine the FDIC’s efforts to address severe understaffing issues.
The senators highlighted the understaffing at the FDIC’s New York Regional Office, noting that, between 2020 and 2023, an average of 40 percent of the large bank examiner positions had been vacant or filled by temporary staff. According to the senators, this understaffing caused supervisory delays and quality control issues in the supervision of certain banks. The FDIC OIG had previously recommended the agency reevaluate its strategy to attract and retain staff, a challenge worsened by high employee retirement-eligibility rates.
In December 2023, the FDIC Board of Directors approved a new budget to increase examiner positions in response to these challenges. However, President Trump’s executive order instituting a hiring freeze led to the rescission of job offers, raising concerns among the senators about the agency’s ability to maintain the safety and soundness of the banking system.
