THOMAS J. CURRY
Director’s post possible
Massachusetts Commissioner of Banks Thomas J. Curry is under consideration for nomination to the board of directors of the Federal Deposit Insurance Corp. in Washington, D.C.
As first reported on Banker & Tradesman’s Web site last week, Curry is being considered for nomination to the currently vacant position of director of the FDIC. In all, the FDIC board has five members, including chairman, vice chairman, comptroller of the currency and director of the Office of Thrift Supervision.
According to David Barr, a spokesman at the FDIC, the president appoints all the positions of chairman, vice chairman and director after a “sponsor” puts forth the nomination to the president.
Barr said a “sponsorship” could be in the form of a senatorial backing or trade association backing that would involve the presentation of a name to the White House for consideration to the FDIC board.
Once the president makes a formal nomination for a board position, the Senate Banking Committee holds hearings on the proposed members and, if approved by the Banking Committee, that nomination will go to the Senate floor for a full vote.
According to Barr, the Senate conducts a background check of the nominee once the president has made the nomination.
“It only takes one senator to stop a nomination,” said Barr. “Once you’re in the Senate pool, there are a lot of things out of your control.”
‘Ethical Rules’
Barr said that no more than three individuals serving on the board can be from the same political party, and the board’s political representation is not dependent on the president’s party affiliation.
“Board members do not serve at the pleasure of the White House,” said Barr. “Once you’re one of the three designated FDIC board members, you are part of the independent agency.”
Once the Senate has approved a nomination, the six-year term on the board of directors begins as soon as the Senate swears in the candidate, Barr said. He added, however, that it could take several weeks before an individual officially begins his or her position on the board due to rules and regulations.
“With our board membership, there are certain ethical rules to adhere to,” said Barr. “Members have to recuse themselves from their current association or institution and they can’t hold stock in any financial institution so they have to divest portfolio, which can both prolong the process.”
Barr also said financial disclosure statements and “bureaucratic” stipulations can delay the process.
“Once all that is cleared, [the board member] is sworn in and he or she begins serving the term, or remaining term of the vacated position,” said Barr.
Industry officials say the position of director has been open for a while and can take anywhere from three to six months to fill once a nomination is made by the president. Nominations sent to the White House for consideration to the FDIC board of directors are based on numerous factors including experience in the industry.
Barr said the pool of people “under consideration” can vary in numbers at any given time and while there is no time frame for filling a position, “The White House has the control over the filling of the position.”
