On October 30, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held a nomination hearing for multiple nominees, including Acting Chair Travis Hill for Chairperson of the FDIC Board of Directors. The hearing followed President Trump’s nomination of Hill in late September (covered by InfoBytes here). In his opening statement, Hill discussed his service as vice chair of the FDIC from 2023 to 2025 and as an advisor to FDIC Chairperson Jelena McWilliams from 2018 to 2022, noting his experience addressing bank failures in 2023 and the FDIC’s efforts during this time to remedy “deep-seated” workplace culture issues. Hill indicated the agency’s ongoing focus on tailoring supervision to material financial risks, resolution readiness, and adjusting the capital framework.
Bipartisan concerns over enduring workplace culture issues at the FDIC featured prominently in the hearing, with Ranking Member Elizabeth Warren (D-MA) stating the “toxic culture flourished” while Hill was a senior executive at the FDIC, and expressing concern over Hill’s lack of responsiveness on the issue. Sen. John Kennedy (R-LA) expressed similar concerns, questioning Hill on his awareness of hundreds of allegations of discrimination and harassment, and requesting a report within 30 days on what the FDIC had done to date to remedy the issues. Hill stated that reforming the culture remained a top priority under his leadership. Additional bipartisan questions queried the potential impacts of a proposed bill to increase deposit insurance coverage for noninterest-bearing accounts. Hill, in response, expressed uncertainty as to the bill’s potential effects, though indicated a distinction between the impact on community and larger banks, and noted that an expansion in deposit insurance would, all else equal, reduce run risks.
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