Obama Nominates Candidate for FDIC Vice Chairman

The Obama administration's latest appointment on Capitol Hill was announced recently, with the news that Thomas Hoenig would be nominated as vice chairman of the ""FDIC"":www.fdic.gov/ The former chief of the ""Federal Reserve Bank of Kansas City"":www.kc.frb.org/ would serve the FDIC until December 2015 if he is approved by the Senate.

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Hoenig retired from the Kansas City Fed in March, after acting as its president for two decades, and his departure became effective on October 1. Known as a proponent of holding the

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country's major financial institutions accountable for their role in the financial crisis, Hoenig has been outspoken about the special treatment he feels such organizations have received.

His nomination represents a possible positive move for smaller, community-based banks, as Hoenig has long been active in protecting the interests and addressing the regulatory concerns of such companies. Currently, Hoenig has been vocal in his disagreement with the Fed's decision to keep short-term interest rates near zero, citing the inherent inflation risks.

If confirmed, Hoenig will likely be operating under Martin Gruenberg, the FDIC's former vice chairman. Gruenberg is nominated to become the chairman of the organization, and many in Washington, D.C., feel Gruenberg's approval by the Senate as the FDIC's chairman is imminent. Hoenig's long career with the Kansas City Fed represents the most lengthy service of any of the 12 regional bank presidents.

Additionally, FDIC board member Thomas Curry is up for the position of head of the ""Office of the Comptroller of the Currency"":www.occ.treas.gov/; however, like Gruenberg, Curry's nomination has yet to be voted on by the Senate. The personnel changes within the FDIC arrives following the July departure of Shelia Bair as the entity's chairman.