Bill Overview
Title: A bill to amend the Federal Deposit Insurance Act to remove the Comptroller of the Currency and the Director of the Bureau of Consumer Financial Protection from the Board of Directors of the Federal Deposit Insurance Corporation, and for other purposes.
Description: This bill revises membership of the Board of Directors of the Federal Deposit Insurance Corporation. Currently, the Comptroller of the Currency and the Director of the Consumer Financial Protection Bureau have statutorily designated seats on the five-member board. The bill removes this requirement and bars any officer of either agency from holding seats on the board. Additionally, the bill revises the continuation of service requirements to limit a board member's service beyond the end of their term.
Sponsors: Sen. Scott, Tim [R-SC]
Target Audience
Population: People reliant on the FDIC insured banking system
Estimated Size: 335000000
- The Federal Deposit Insurance Corporation (FDIC) has a significant role in maintaining stability and public confidence in the nation’s financial system, affecting every individual and business relying on bank services.
- Changes to the board's composition might impact the regulatory focus and decisions made by the FDIC. Any shifts could affect banks' operations, which subsequently impact account holders, borrowers, and businesses.
- Removing the Comptroller of the Currency and the Director of the Consumer Financial Protection Bureau might lead to lessened regulatory oversight in certain areas previously championed by these directors.
- Although the direct change is in board composition, the downstream effect could influence regulatory approaches affecting deposit insurance, bank resolutions, and consumer protection strategies.
- The effects of this bill are at a high federal agency level, most directly impacting FDIC policy and banking sector regulatory practices.
Reasoning
- Most people engage with the banking system primarily through consumer transactions, so direct awareness of such policy changes will be low, impacting mainly those more closely tied to financial sectors.
- Changes affecting FDIC could mainly influence how regulatory decisions are made or prioritized, which affects banks' risk-taking behaviors and indirectly, public trust in the banking system.
- Most consumers might not experience immediate impacts in daily banking experiences, but indirect effects could manifest if bank stability or consumer protection degrades.
- The largest visible impacts might be on individuals whose employment or savings heavily depend on the stability and regulatory environment maintained by FDIC's oversight.
- Given the large target population and minor budget impact, individual self-reported wellbeing changes will largely remain speculative unless connected to financial tumult or policy changes trickling down.
Simulated Interviews
Small Business Owner (San Francisco, CA)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I'm worried that removing key leaders from the FDIC board might lead to shifts in bank policies that could affect my access to business loans.
- I rely on loans for expansion, and any banking instability could affect my business planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Investment Banker (New York, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy might shift how we interact with the FDIC and could alter risk assessments.
- Our clients might see changes in how their assets are protected or reported.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Bank Teller (Chicago, IL)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I'm not sure how this will affect us, but any changes to FDIC policies that influence customer confidence might make my job harder.
- Our bank relies on FDIC to instill customer trust.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Tech Entrepreneur (Atlanta, GA)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm concerned this might lead to less consumer protection, affecting how my company builds trust with clients.
- Regulations supporting stability are crucial for my business model.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Elementary School Teacher (Salt Lake City, UT)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- I don't really understand these changes, but I care about my savings being protected.
- It sounds like something that could matter if it disrupts banks that hold my accounts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I find it troubling that the people overseeing critical consumer protections are being removed.
- I'm concerned about the long-term impacts on deposit security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 10 |
Regulatory Analyst (Houston, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- This policy could change the regulatory landscape, creating new challenges as well as opportunities.
- Stakeholders need to adapt quickly to shifts in oversight and compliance expectations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 10 | 9 |
Software Engineer (Seattle, WA)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I'm unsure of immediate effects, but knowing my mortgage and savings are secure is important.
- I don't regularly follow such niche policy changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Freelance Artist (Portland, OR)
Age: 26 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 16/20
Statement of Opinion:
- I don't think this affects me much since I don't engage deeply with banks beyond checking accounts.
- If banks start failing, I might worry more about where I keep my money.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 7 |
Retired School Principal (Phoenix, AZ)
Age: 65 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- I'm hopeful that despite changes, the foundations of FDIC protections remain strong.
- Stability is key for my peace of mind heading into these years.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $1000000 (Low: $500000, High: $1500000)
Year 2: $500000 (Low: $250000, High: $750000)
Year 3: $500000 (Low: $250000, High: $750000)
Year 5: $250000 (Low: $100000, High: $500000)
Year 10: $200000 (Low: $100000, High: $300000)
Year 100: $100000 (Low: $50000, High: $150000)
Key Considerations
- Change in board composition could lead to a shift in regulatory focus of the FDIC.
- Reduction in statutory oversight from the removed positions may slightly alter the policy orientation of the FDIC, affecting the banking sector.
- Long-term policy adjustments might shift FDIC's strategic priorities.