WASHINGTON It took more than the 12 days of Christmas, but in recent weeks the White House has given three Republicans top banking agency posts, made two accounting executives securities regulators, and removed one angry Democrat from office.
Completing a sweep of the financial agencies, on Thursday the White House unceremoniously fired Yolanda T. Wheat, the former Democratic chairman of the National Credit Union Administration, to make way for its own nominee. On the same day it named Paul S. Atkins and Cynthia A. Glassman to the Securities and Exchange Commission.
Though the administration still has some seats to fill, including two each at the SEC and Federal Reserve Board, and one each at the Federal Deposit Insurance Corp. and NCUA, the moves capped off a year in which the White House put its stamp on all the agencies. One of the few Democratic survivors is Comptroller of the Currency John D. Hawke Jr., whom many Republican strategists thought would be asked to leave during the year, but who has steadfastly remained in power. He appears likely to continue because of his popularity among bankers and his political acumen.
Also, it helps him that the comptroller is legally required to serve on the FDIC board, and Republicans already occupy the maximum number of seats they are allowed by law: Don Powell, the chairman; John Reich, and James Gilleran, the newly sworn-in Office of Thrift Supervision director.
The search for a fifth board member has intensified. Sources said Mr. Powell has made it one of his priorities in order to strengthen the independence of the agency. Though no names have been circulated yet, Jodey Arrington, the FDICs new chief of staff and a former employee in the White House office of personnel, is expected to play a key role in the search. The fifth seat is traditionally given to someone with state regulatory experience, and sources said meetings with industry groups to identify a candidate have begun.
Ms. Wheat was canned by the White House just days after delivering a public tongue-lashing to fellow board members for eliminating a community reinvestment requirement for community chartered credit unions.
Sources said that the White House had asked Ms. Wheat for her resignation two weeks ago, but she refused. Her forced exit makes way for a recess appointment of current nominee JoAnn Johnson, an Iowa state senator chosen in September.
Ms. Wheat was not the only Democrat to depart the agency this week. Clinton appointee Geoff Bacinos term expired on Thursday, leaving Chairman Dennis Dollar as the sole board member. Mr. Bacino had been given a recess appointment by President Clinton at the end of his term, but was not renominated by the Bush administration.
The sources said late last week that the temporary appointment of Ms. Johnson could come at any time, and agency officials said they were hopeful for a quorum by the next scheduled board meeting on Jan. 17. Ms. Johnsons nomination has not yet been acted on by the Senate, and her recess appointment would last until Congress adjourns at the end of 2002.
The SECs board is on its way to being restocked, with only two unclaimed seats out of five. Mr. Atkins, a partner at PriceWaterhouseCoopers and a former chief of staff and counsel for the SEC, and Ms. Glassman, a principal at Ernst & Young and a former senior economist for the Fed, were nominated Thursday.
The administration has two slots to fill for the central bank, caused by the retirement of Edward W. Kelley and the anticipated departure of Laurence H. Meyer, who said he plans to leave after his term expires in February. Sources said they had heard little speculation about the posts, though there had been talk that Alfonso Martinez-Fonts Jr., the Cuban-born chairman and chief executive officer of J.P. Morgan Chase Bank of Texas in El Paso, would get a nod for Mr. Kelleys seat.
President Bush put the Finance Boards leadership in place after naming John T. Korsmo chairman last week. The five-member board is currently at full strength for the first time since 1994 but not for long. Deposed Chairman Timothy ONeills term expired during the summer, and he is expected to be replaced next year.
