McKernan steps down from the FDIC Board of Directors
The Federal Deposit Insurance Corporation (FDIC) has undergone a change in leadership, with Rodney Hood, a Republican, taking over as the new acting comptroller of the Office of the Comptroller of the Currency. Hood's appointment comes following the departure of Jonathan McKernan, another Republican, from the FDIC board.
McKernan, who served on the FDIC board since 2023, was vocal about various issues during his tenure. He advocated for timely approval of bank mergers, along with FDIC Acting Chair Travis Hill. McKernan also expressed concern about ensuring asset managers don't exert outsized influence on publicly traded banks.
However, one of McKernan's most significant concerns was the FDIC's handling of allegations of misconduct by agency executives. An independent review found "sexual harassment, discrimination, and other interpersonal misconduct" at the FDIC, and McKernan believed that FDIC leadership had failed to deliver prompt accountability regarding these allegations. He expressed frustration with the delay in reaching an agreement on investigating misconduct.
McKernan served as the co-chair of a special committee that monitored law firm Cleary Gottlieb Steen & Hamilton's review of sexual misconduct and toxic work culture allegations at the FDIC. In a November statement, McKernan stated that accountability for wrongdoing will be delayed due to the Board's debates, delays, and false starts.
The FDIC Board of Directors currently includes Acting Chairman Travis Hill and the outgoing member Rodney Hood, with at least one vacant position after McKernan's exit. The Board is composed of five members, including Chairman, Vice Chairman, Appointive Director, and other members, but with McKernan's departure, at least one seat remains unfilled as of late July 2025.
It's worth noting that, according to agency rules, no more than three of the FDIC's five board members can be from the same political party. This rule is significant, as both Hill, Hood, and the Consumer Financial Protection Bureau's acting director, Russ Vought, are all Republicans.
The departure of McKernan and the ongoing vacancy on the FDIC board come at a crucial time, as the FDIC continues to navigate regulatory issues and bank mergers. The agency's leadership and composition will undoubtedly have a significant impact on its direction and decisions moving forward.
[1] FDIC.gov - FDIC Board of Directors [2] CNBC - FDIC board member McKernan resigns [4] American Banker - FDIC Board Remains Partisan and Incomplete [5] Wall Street Journal - FDIC Board of Directors: Composition and Roles Explained
Business news outlets report that the FDIC Board of Directors is facing a change, with the departure of Rodney Hood, who is set to take over as the new acting comptroller of the Office of the Comptroller of the Currency. This change comes amidst concerns raised by former FDIC board member, Jonathan McKernan, regarding the handling of allegations of misconduct by agency executives and the FDIC's response to these allegations. The ongoing vacancy on the FDIC board, due to McKernan's departure and the rules limiting the political affiliation of its members, could significantly impact the agency's direction and decisions in finance and business politics, particularly in the area of bank mergers.
