Senators Question FDIC Staffing Cuts Following Bank Failures

Lawmakers warn that rescinded job offers for bank examiners could undermine financial oversight and stability.

Democratic senators, led by Elizabeth Warren, have urged the FDIC's Inspector General to investigate the agency's decision to revoke over 200 job offers for bank examiners.
Lawmakers argue that staffing shortages at the FDIC contributed to the 2023 collapse of Signature Bank, which cost the Deposit Insurance Fund nearly $2.4 billion.
The FDIC's Inspector General previously identified that a lack of personnel led to delays, canceled exams, and quality control issues in supervising large banks like Signature.
The staffing reductions follow a federal hiring freeze initiated under Donald Trump's administration, reversing earlier efforts to increase examiner positions.
Senators emphasize the urgency of addressing FDIC staffing challenges as a significant portion of its workforce nears retirement eligibility.