The minority of the U.S. Senate Committee on Banking, Housing and Urban Affairs released a letter from Ranking Member Elizabeth Warren and Senator Chris Van Hollen to Acting Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill and FDIC Inspector General Jennifer Fain, objecting to the suspension of the Inspector General’s work on a review of the FDIC’s succession management and employee retention efforts amid DOGE-driven reductions in force. The senators argued that FDIC staffing shortages are weakening bank supervision and increasing the risk of bank failures. The letter cites Hill’s rescission of more than 200 job offers to bank examiners and notes further workforce reductions, including an April 2025 cut of 20 percent (approximately 1,250 positions). It also points out that the review was launched after Warren requested it and the Inspector General agreed, but that the Office of Inspector General later announced it would suspend further work. The senators asked the Office of Inspector General to provide, no later than September 30, 2025, an estimate of when it will resume and conclude the review, and to state whether the Trump Administration requested that the review be suspended.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-09-18
U.S. Senate Committee on Banking, Housing and Urban Affairs Democrats press FDIC Inspector General to restart suspended review of staffing cuts
The minority of the U.S. Senate Committee on Banking, Housing and Urban Affairs, led by Elizabeth Warren and Chris Van Hollen, objected to suspending the FDIC Inspector General's review of succession management and employee retention amid staffing cuts. They argue that these reductions, including a 20% workforce cut in April 2025, weaken bank supervision and heighten the risk of bank failures. The senators requested a timeline for the review's resumption and clarification on whether the Trump Administration influenced its suspension.