What This Bill Does
This bill changes the rules for who serves on the Board of Directors of the Federal Deposit Insurance Corporation (a government agency that protects bank deposits). The bill updates the types of experience board members must have and adds new limits on how long people can serve.
Who It Affects
The President and Senate (who appoint board members), people appointed to the FDIC Board of Directors, the Director of the Bureau of Consumer Financial Protection, and banks with less than $10 billion in total assets.
Key Provisions
- The President must appoint four board members with Senate approval. One must have state bank supervisory experience (managing banks at the state level), and one must have work experience in banks with less than $10 billion in total assets. (Sec. 2(1)(B))
- The Director of the Bureau of Consumer Financial Protection attends board meetings as a non-voting observer (someone who watches but cannot vote). (Sec. 2(1)(3))
- Board members cannot serve more than two consecutive terms. (Sec. 2(2)(A))
- No board member can serve more than twelve years total, regardless of other rules. (Sec. 2(2)(B))
What Changes
The bill requires specific banking experience for certain board positions and prevents any board member from serving indefinitely by creating term limits.
Important Definitions
None defined in the bill text.
I
118TH CONGRESS
1ST SESSION H. R. 1409
To amend the Federal Deposit Insurance Act to revise the membership
requirements for the Board of Directors of the Federal Deposit Insurance
Corporation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 7, 2023
Mr. LUETKEMEYER introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To amend the Federal Deposit Insurance Act to revise the
membership requirements for the Board of Directors of
the Federal Deposit Insurance Corporation, and for other
purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘FDIC Board Account-
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ability Act’’.
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SEC. 2. FDIC BOARD OF DIRECTORS.
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Section 2 of the Federal Deposit Insurance Act (12
7
U.S.C. 1812) is amended—
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•HR 1409 IH
(1) in subsection (a)—
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(A) in paragraph (1)—
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(i) in subparagraph (A), by adding
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‘‘and’’ at the end; and
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(ii) by striking subparagraphs (B) and
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(C) and inserting the following:
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‘‘(B) 4 of whom shall be appointed by the
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President, by and with the advice and consent
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of the Senate, from among individuals who are
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citizens of the United States, 1 of whom shall
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have State bank supervisory experience, and
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separately 1 of whom shall have demonstrated
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primary experience working in or supervising
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depository
institutions
having
less
than
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$10,000,000,000 in total assets.’’; and
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(B) by adding at the end the following:
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‘‘(3) NON-VOTING STATUS OF THE DIRECTOR
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OF THE BUREAU OF CONSUMER FINANCIAL PROTEC-
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TION.—The Director of the Bureau of Consumer Fi-
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nancial Protection shall serve as a non-voting ob-
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server to the Board of Directors of the Corpora-
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tion.’’;
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(2) in subsection (c)—
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•HR 1409 IH
(A) in paragraph (1), by adding at the end
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the following: ‘‘No individual may be appointed
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as a member for more than two terms.’’; and
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(B) by adding at the end the following:
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‘‘(4) MAXIMUM
LENGTH
OF
SERVICE.—Not-
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withstanding any other provision of this Act, no per-
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son shall serve as a member for more than twelve
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years in total.’’;
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(3) in subsection (d)(2)—
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(A) by striking ‘‘Consumer Financial Pro-
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tection Bureau’’ each place such term appears
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and inserting ‘‘Bureau of Consumer Financial
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Protection’’; and
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(B) by inserting ‘‘or observer, as the case
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may be,’’ after ‘‘member’’; and
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(4) in subsection (f)(2), by striking ‘‘or of the
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Consumer Financial Protection Bureau’’.
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Æ
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