Last Thursday, the Senate confirmed Jelena McWilliams as the new chair of the FDIC. McWilliams will replace former chairman Martin Gruenberg. Jelena McWilliams was the executive vice president and chief legal officer for Fifth Third Bank.
McWilliams confirmation comes at a pivotal time for the financial industry. The Federal Reserve is preparing for many changes to existing banking rules. Dodd-Frank, the law designed to keep banks from repeating the risky business that led to the 2008 financial crisis, is currently being revised. The Federal Reserve wants to pull back on the restrictions and make the rules clearer. Last Tuesday the House approved to ease the rules for midsize and regional banks. The Community Reinvestment Act, passed to prevent mortgage discrimination and to encourage banks to invest in struggling areas, is also being updated. McWilliams will weigh in on proposed changes to both laws.