SIOUX FALLS – Senate Banking Committee Chairman Tim Johnson (D-SD) today hosted a roundtable discussion with South Dakota bankers and Martin Gruenberg, Acting Chairman of the Federal Deposit Insurance Corporation (FDIC). President Obama nominated Mr. Gruenberg to replace Sheila Bair as Chairman of the FDIC in June.
“I appreciate Marty taking the time to travel to Sioux Falls to share so many great insights,” said Chairman Johnson. “I found today’s roundtable discussion to be informative and productive, and I look forward to helping keep the dialogue open between our state’s bankers and the FDIC.”
“I thank Senator Johnson for the invitation to visit with bankers in his home state,” said Acting Chairman Gruenberg. “I was glad to have the chance to meet with South Dakota bankers and hear directly from them about the issues and challenges that they see on the horizon.”
In response to the financial crisis of 2007-2008, Congress passed the Wall Street Reform and Consumer Protection Act. The new law introduced safety and soundness measures aimed at large and systemically important institutions. Smaller community banks were not responsible for the crisis, and were exempted from many of the new regulations. The law also includes a number of provisions that help community banks.
The FDIC is the primary regulator for community banks and is charged with maintaining stability and public confidence in the nation's financial system. The roundtable discussion was an opportunity for South Dakota bankers to talk with their top regulator about the implementation of the new Wall Street Reform law and other issues.
Acting Chairman Gruenberg highlighted how the Wall Street Reform law strengthened the FDIC’s Deposit Insurance Fund, without asking community banks to pay more. He also pointed out how it expanded the deposit insurance limit to $250,000 per account, which has helped small banks increase business and better serve their communities.