President Barack Obama announced on Friday plans to appoint a JP Morgan executive to the board of the Federal Deposit Insurance Corporation.Jeremiah Norton, an executive director for investment banking at JP Morgan, is one of two Republican-backed nominees for the five-member board, which includes Consumer Financial Protection Bureau head Richard Cordray, who was recently appointed by Obama amid heavy controversy. The other appointee is Thomas Hoenig, a former president of the Kansas City Fed, according to the Wall Street Journal.
Norton worked as a deputy assistant secretary for the Treasury during the Bush administration, and was a key advisor to then-Treasury Secretary Hank Paulson as the government tried to manoeuvre through the financial crisis.
According to Andrew Ross Sorkin’s Too Big To Fail, Norton is known for his heavy hand in the 2008 government bailouts—he not only helped prepare TARP, but is also credited with convincing Paulson that a bailout of the big banks was the right course of action. [via Suzy Khimm at Wonkblog]
Norton and Hoenig have both been confirmed by the Senate Banking Committee, and are now waiting for full chamber approval, Bloomberg reported. Approval of FDIC board members had been delayed at the Senate level as Republican members protested Obama’s appointment of Cordray.
The new FDIC members could play a crucial role as the agency is tasked with overseeing implementations of parts of the Dodd-Frank Act over the course of 2012.