In an unexpected and stunning regulatory development, Christine Wilson, the lone Republican on the Federal Trade Commission (FTC) has announced her resignation in protest over what she called the Commission’s "disregard for the rule of law and due process.”
In a Wall Street Journal commentary, Commissioner Wilson called out FTC Chair Lina Khan by name in complaining about Khan’s "willful regard of congressionally imposed limits on agency jurisdiction, her defiance of legal precedent, and her abuse of power to achieve desired outcomes.”
Next to CFPB Director Rohit Chopra, Chair Khan has probably been the Biden Administration’s most controversial regulator. In fact, both Director Chopra and Chair Khan recently appeared together in the White House citing new regulatory crack-downs. These two powerful agency heads together have jurisdiction over most businesses and financial institutions in the country.
It is highly unusual for a regulator to resign in protest over a colleague’s "honesty and integrity.” The resignation statement, along with other recent personnel changes like the appointment of a well-known consumer advocate to head the Justice Department’s bankruptcy watchdog agency, reflects the alarm felt by many companies and uncertainty for businesses and financial institutions in the future.