House passes bill to change selection process for five IGs

The House approved legislation Monday that would give the president the authority to appoint the inspectors general of five financial regulatory agencies, whose watchdogs are selected by the heads of those agencies.

The bill, introduced by Rep. John Larson, D-Conn., and passed by voice vote under suspension of the rules, would require presidential appointment and Senate confirmation of the IGs of the Federal Reserve, the SEC, the Commodity Futures Trading Commission, the National Credit Union Administration and the Pension Benefit Guaranty Corp.

The measure would expand the watchdogs' subpoena power and ensures that the IGs will not receive a cut in pay as a result of the change.

Although it won praise from lawmakers on both sides of the aisle who said the shift would make IGs more autonomous because they would no longer be subject to hiring and firing by the leadership of the agencies they oversee, the bill was opposed by several of the IGs whose jobs would be affected. SEC Inspector General H. David Kotz testified earlier this year that he feared that a presidential appointment -- and a long Senate confirmation process -- would unduly "politicize" the job.