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Capito Announces Subcommittee Hearing To Conduct Oversight Of FDIC

Washington, May 24 -

WASHINGTON: The Financial Institutions and Consumer Credit Subcommittee, chaired by Rep. Shelley Moore Capito, will convene for a hearing with Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair. The hearing will take place on Thursday, May 26th at 9:30 a.m. in room 2128 Rayburn.

The hearing, entitled “FDIC Oversight: Examining and Evaluating the Role of the Regulator during the Financial Crisis and Today,” will focus on the expanded authorities given to the FDIC under the Dodd-Frank Act; the pace of bank failures and their impact on the solvency of the Deposit Insurance Fund; and changes to assessments charged by the FDIC.

Subcommittee Chairman Capito said, “With Chairman Bair’s tenure at the FDIC coming to an end, this hearing will provide members of the Subcommittee to discuss the role of the FDIC in the financial crisis and the new enhanced powers of the FDIC after Dodd Frank.   This hearing will also provide an opportunity to discuss the current state of insured banks and the effect recent bank closures have had on the deposit insurance fund."

Financial Services Committee Chairman Spencer Bachus said, “The Dodd-Frank Act significantly expanded the FDIC’s authorities from protection of the deposit insurance fund and regulation of state-chartered banks to, most significantly, managing the resolution of systemically important financial institutions.  This oversight hearing will address issues critical to our nation’s economic recovery.”

The FDIC is an independent agency that insures deposits, examines and supervises financial institutions, and manages receiverships. The FDIC manages the Deposit Insurance Fund (DIF), which consists of risk-based assessments levied on depository institutions. The fund is used for various purposes, primarily for resolving failed or failing institutions. The Dodd-Frank Act expanded the role of the FDIC in liquidating troubled financial institutions to include nonbanks as well as banks.

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