House Financial Services and Oversight Committee Chairs Urge FDIC to Boost Crisis Readiness Policies
Members of the House Financial Services and Oversight Committees recently wrote a letter to the FDIC seeking information on whether—and how—the agency is prepared to handle the threat of the coronavirus pandemic to the United States economy. The letter is a response to the FDIC Inspector General’s recent report warning about weaknesses in the agency’s crisis readiness policies.
In the letter, the Committee requested that the FDIC “provide our staffs with a bipartisan briefing regarding steps it is currently taking to improve crisis readiness, implement the Inspector General’s recommendations, and prepare for the potential impact of the coronavirus crisis on FDIC’s critical role in maintaining the stability of the nation’s financial system.”
Specifically, the FDIC Inspector General found that the agency lacks policies that define readiness responsibilities and authorities. The Inspector General made 11 recommendations to improve crisis readiness, including training responsible employees on plan-specific tasks, documenting exercises, and establishing agency-wide policies and procedures.
Crisis readiness concerns have been raised at the FDIC repeatedly since 2018, and the Inspector General has identified it as a top challenge for the past three years.
“In light of the ongoing coronavirus pandemic and resulting strains on the global financial system, we urge you to act immediately to establish robust crisis readiness,” the Chairs wrote.
The letter was written by House Financial Services Committee Chairwoman Maxine Waters (D-Calif.), House Oversight and Reform Committee Chairwoman Carolyn B. Maloney (D-N.Y.), and the Oversight Committee’s Subcommittee on Economic and Consumer Policy Chairman Raja Krishnamoorthi (D-Ill.).