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WASHINGTON D.C. - Today, Congressman David Scott (GA-13), Congressman Emanuel Cleaver (MO-05), and Congresswoman Nikema Williams (GA-05), members of the House Financial Services Committee,  led 50 House Democrats in sending a letter to Travis Hill, the Acting Chairman of the Federal Deposit Insurance Corporation (FDIC), opposing the Trump Administration's effort to undermine the agency’s critical role of ensuring financial stability and protecting consumers from financial harm.

This letter follows ongoing reports that the Trump Administration and Elon Musk are planning to move forward with a proposed merger of the FDIC with other key banking regulators, including the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve’s supervisory division. In recent weeks the Administration fired hundreds of bank examiners, failed to put forward Acting Director Hill’s nomination to officially lead the agency before the U.S. Senate, and reportedly asked the Treasury Department to draft recommendations streamlining the role of other banking regulators in order to excerpt more control over them.

“The notion that the President would consider merging or consolidating the FDIC is an outrageous, reckless, and profoundly irresponsible attack on the financial security of millions of Americans,” said Congressman David Scott (GA-13). “The FDIC has been the backbone of our banking system for nearly a century, ensuring that depositors’ money is safe and protected against bank failures. To dismantle the institution by firing the very people tasked with overseeing bank soundness and safety, is to invite chaos, economic instability, and financial ruin for working families and small businesses across Georgia and the nation. Acting Chair Travis Hill must immediately rebuff any attempt to blunt or politicize the mission of the FDIC, oppose the mass layoff of key examiners and reaffirm his commitment to the agency’s independence.”

“Since the Great Depression, the FDIC has played a vital role in supporting the wellbeing of American families and the economy, promoting stability and confidence in the banking system and guaranteeing that hard-earned deposits are protected,” said Congressman Cleaver (MO-05). “Having been in Congress during the 2008 financial crisis, I’ve seen the horrible consequences that follow reckless deregulation and inadequate oversight of America’s financial system. While I pray to never see such an economic collapse again, the Trump Administration’s efforts to put special interests over the interests of everyday Americans by gutting the FDIC and those responsible for ensuring our financial system is sound leave me properly petrified. It’s imperative that the Acting FDIC Chair protect the mission and integrity of the independent agency before another tragedy occurs.”

"Once again, President Trump is showing his laughable ignorance of our financial system,” said Congresswoman Williams (GA-05). “The FDIC’s independence is essential to protecting confidence and stability in our banking system. Chairman Hill’s willingness to entertain consolidating the FDIC with other banking regulators, while it is already understaffed, is a direct threat to that stability. Dismantling this agency is another thinly veiled attempt to attack working families, many who look like my constituents in Atlanta, and a deliberate attempt to widen the racial wealth gap."

“The National Treasury Employees Union (NTEU), representing the employees at FDIC, OCC and CFPB, is grateful for Representatives Scott, Cleaver, Williams and others for their letter to Acting Chair Hill.  The current Administration is playing reckless games with the bank deposits of hard-working Americans.  Firing hundreds of experienced bank examiners puts every American's bank accounts at risk.” Doreen Greenwald, National President, National Treasury Employees Union.

"It is gravely misguided and dangerous to undermine the independence of the FDIC which has tirelessly and capably protected depositors and the economy for almost a century. People rely on the FDIC seal of approval and communities across the country rely on the FDIC to preserve the safety and soundness of local banks." Patrick Woodall, Managing Director of Policy, Americans for Financial Reform.

The letter was endorsed by: Americans for Financial Reform (AFR), the National Treasury Employees Union (NTEU) and Public Citizen.

Full list of signers include: David Scott (GA), Emanuel Cleaver (MO), Nikema Williams (GA), Balint, Beatty, Boyle, Brown (OH), Carson, Carter (LA), Casar, Casten, Cisneros, Conaway, Davis (IL), Evans (PA), Fields, Foster, Garcia (TX), Goldman (NY), Green (TX), Ivey, Jackson (IL), Jayapal, Hank Johnson (GA), Julie Johnson (TX), Kelly (IL), Khanna, Latimer, Lynch, McBath, McGovern, Meeks (NY), Nadler, Norton, Ocasio-Cortez, Pettersen, Pressley, Quigley, Ramirez, Ross, Schakowsky, Sewell, Bennie Thompson (MS), Mike Thompson (CA), Tlaib, Tokuda, Vargas, Velázquez, Wilson (FL)

The text of the letter can be found HERE.