Former FDIC Chair William Isaac Dies at 82

• Key insight: Former Federal Deposit Insurance Corp. Chair William Isaac died Friday at age 82 from complications related to Lewy body dementia, just days after announcing his retirement from Sarasota Private Trust.
• Supporting data: Appointed to the FDIC board in 1978 and later named chairman by President Ronald Reagan, Isaac was the youngest person to lead the agency at the time.
• Forward look: Isaac's influence on bank regulation and supervision continued long after his government service through his consulting business and public commentary.

William Isaac, the former Federal Deposit Insurance Corp. chair who steered the agency through the financial turbulence of the 1980s, died Friday at age 82 from complications related to Lewy body dementia, according to his family. 

The FDIC announced Isaac's death Monday, highlighting his leadership of the federal response to the banking and savings and loan crises of the 1980s, when roughly 3,000 banks and thrifts failed. 

"Mr. Isaac is widely credited with helping to maintain stability in the financial system during this period of stress," the FDIC said in a release. "His contributions helped shape important discussions about bank supervision, resolution practices, and deposit insurance policy, and he remained an influential voice on banking issues long after his government service."

Isaac's passing comes just days after he announced his retirement from Sarasota Private Trust and other businesses affiliated with the Milstein family, describing the decision as the close of an "extraordinary career" across government service and his banking career.

Born December 21, 1943, Isaac served as the FDIC's 14th chairman from 1981 to 1985, having already served as a member of the FDIC board since 1978. Upon his nomination by President Ronald Reagan and later confirmation to lead the agency, Isaac was the youngest person to lead the FDIC at the time.

During Isaac's tenure at the agency, the FDIC helped manage the failures of roughly 3,000 banks and thrifts, including many of the nation's largest regional firms, as the banking system experienced one of the most unstable periods in modern U.S. financial history. 

After leaving government, Isaac founded The Secura Group, a banking consulting firm acquired by FTI Consulting in 2011; he also later served as chairman of Fifth Third Bancorp. In recent years, he chaired Sarasota Private Trust and Cleveland Private Trust, remained a frequent commentator on banking regulation — including for American Banker — and authored the 2010 book "Senseless Panic: How Washington Failed America." The Secura/Isaac Group, the consulting firm Isaac founded, said in a statement that his career "is a testament to his dedication to the stability of the U.S. banking system in the last 50 years."

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"We all share fond memories of working with Bill and enjoying his jovial spirit and devoted friendships, for many of us spanning several decades," the firm said. "Our thoughts and deepest condolences are with Bill's family at this time."

James Watkins, president of the Secura/Isaac Group, remembered Isaac as "an inspirational leader, devoted to the highest levels of public service and building a strong U.S. banking system. We miss him tremendously and valued our time with him."

Veteran banking lawyer Rodge Cohen credited Isaac with helping avert a broader financial catastrophe during the 1984 rescue of Continental Illinois.

"I think passage of time may dim memories, but it was his foresight and integrity that solved the Continental Illinois crisis," Cohen said. "Had it not been solved, who knows whether we would have had the great financial crisis almost 25 years earlier? Bill saw the need to commit the FDIC to support the rescue program and stood up against a lot of opposition from the Republican administration, even though he was a Republican. His integrity was remarkable."

Isaac is survived by his wife, Angele Christine (Verney) Isaac; his daughters, Lennon G. Isaac and Stephanie Isaac Neal; his sons, Quinn Verney Isaac and David Michael Isaac; and his grandsons, Carter and Coleman Neal.