Banking regulator rescinds more than 200 job offers for examiners it needs

Source: Washington Post

A government-wide hiring freeze has led the Federal Deposit Insurance Corp. to yank job offers to more than 200 new examiners, the front-line employees who closely monitor banks to ensure they operate safely and adhere to an extensive rule book.

The FDIC is already facing a staffing challenge, particularly with a lack of examiners, undermining its ability to reduce the risk of bank failures. A chronic shortage of examiners contributed to the failure of Signature Bank, one of three large banks to collapse in 2023, the agency has said.

Though the FDIC historically operates independently of the White House, it is complying with the freeze, which President Donald Trump announced through an executive order last week. The move demonstrates the extent to which financial policy is increasingly set by the party in control of the White House.

The cuts applied to entry-level positions for examiners, a person familiar with the matter said, and broadly speaking, the agency is considering whether to submit requests for exemptions around the freeze, according to another person familiar with the agency’s thinking. Both people spoke on the condition of anonymity to disclose internal decisions.

Read more: https://www.washingtonpost.com/business/2025/01/27/fdic-bank-examiners-job-offers-rescinded/