Oversight and Financial Services Committee Chairs Seek Briefing on FDIC’s Readiness for Financial Crisis During Pandemic
Washington, D.C. (Apr. 14, 2020)—Oversight and Reform Committee Chairwoman Carolyn B. Maloney, Financial Services Committee Chairwoman Maxine Waters, and Oversight Economic and Consumer Policy Subcommittee Chairman Raja Krishnamoorthi sent a letter to the Federal Deposit Insurance Corporation (FDIC) seeking information on the agency’s preparedness for a financial crisis as coronavirus poses a threat to the stability of the nation’s economy.
Last week, the FDIC Inspector General issued a new report warning about multiple weaknesses in FDIC’s crisis readiness policies, procedures, and training, raising questions about whether the agency is prepared for the potential financial consequences from the coronavirus crisis.
The Inspector General found that the FDIC lacks documented policies and procedures for readiness planning, including policies that define readiness authorities, roles, and responsibilities.
The Inspector General made 11 recommendations to improve the FDIC’s crisis readiness planning.
“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 Inspector General has raised concerns about crisis readiness at FDIC repeatedly. In fact, Inspector General assessments identified it as a top challenge for the agency for 2018, 2019, and 2020.
“We also request that 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,” the Chairs wrote.
Click here to read the letter to the FDIC.