Frank: Obama to nominate FDIC No. 2 for top job

Frank, the ranking member of the House Financial Services Committee, also indicated that Gruenberg would be a solid choice and, because of his past experience in the Senate, might have a smoother path to confirmation in that chamber. 

Before moving to the FDIC in 2005, Gruenberg worked for then-Sen. Paul Sarbanes (D-Md.) at the Senate Banking Committee, where he worked on, among other things, the Sarbanes-Oxley Act that looked to overhaul corporate accounting practices.

“He’s been there. He’s the deputy. He is the logical one for confirmation, having served in the Senate,” Frank said. “There’d be great continuity.”

Amy Brundage, a White House spokeswoman, said in a statement that the administration would "decline to comment on any speculation about potential candidates before the president makes his decision." The Wall Street Journal first reported Thursday that Frank thought Gruenberg would be the choice, after saying he was a top contender a couple of weeks back. 

Should Gruenberg get the top job at the FDIC, he will head up an agency that has new responsibilities since the Dodd-Frank Wall Street reform bill became law last year. 

Gruenberg previously served as acting FDIC chair for about seven months in 2005 and 2006 before Bair stepped in.