From BankLawyers Blog--there appear to be other reasons to oppose her:
White House To Nominate Diana Taylor To Head FDIC
Press reports today indicate that the White House will nominate New York State Banking Superintendent (and New York City Mayor Michael Bloomberg's "main squeeze") Diana Taylor as Chairman of the FDIC, succeeding Don Powell, who resigned to head federal reconstruction efforts to rebuild damage caused by this Fall's hurricanes. Today's American Banker newspaper (paid subscription required) reports that Taylor's nomination should be announced in January or February, following completion of the normal vetting process.
As the head banking regulator for the State of New York, Ms. Taylor has been a strong proponent of the dual banking system and of state's rights, and a foe of the federal preemption of state consumer protection laws. She had highly publicized confrontations with the OCC over its preemption regulations, particularly with respect to the extension of federal preemption principles to operating subsidiaries of national banks. In May, Ms. Taylor testified before the FDIC in opposition to a proposal for FDIC preemption of state law (see here for this blog's most recent post about the FDIC proposal). In that testimony, she made two especially telling statements: (1) "The solution is not to compound what the OCC started, by giving every State the right to pre-empt every other state." (2) "Furthermore, mortgage bankers and brokers and MSBs should not be permitted to hide behind the skirts of national banks. State regulators and laws should be able to protect their consumers."
Given the foregoing positions, it is reasonable to believe that she will not be a strong proponent of the FDIC's proposed preemption regulation. On the other hand, when a rider changes horses, she tends to adapt to the needs of the animal she's currently riding so as not to be bucked off. She understands that the OCC is not going to rescind its preemption regulations, and that the US Congress is not likely to override them. Therefore, like Don Powell, she may decide that for the survival of the dual banking system (and for the survival of the FDIC's role as the primary federal regulator of state-chartered, non-FRB-member banks), some form of federal preemption for state-chartered banks will be necessary.
If any more large state banks decide to convert to national banks or federal thrifts, the "market" may force her hand, notwithsatnding her natural inclinations.
I had already read the article..
I noted that besides some disagreement concerning policy, there was another point that is not so specific, but may be telling..
following completion of the normal vetting process.
It may be there were "skeletons in the closet" that the White House simply decided were not worth the hassle..
Illegal foreign housemaids?
Failure to pay Social Security taxes and with-holding on those illegal workers?.
It's been the downfall of several nominees in the past.. even some federal judiciary nominees, and IIRC, a Dem Attorney General nominee..
The "vetting process" leaves a lot of wounded by the wayside...