Tue. Jun 18th, 2024

FDIC Chair Martin Gruenberg to resign after workplace harassment probe

By 37ci3 May21,2024

Federal Deposit Insurance Corp. Chairman Martin Gruenberg announced Monday that he will resign after a recent investigation revealed a widespread culture. sexual harassment and discrimination in an independent agency.

“In light of recent events, I am prepared to step down once a successor is confirmed,” Gruenberg said in a statement. “Until then, I will continue to fulfill my duties as FDIC Chairman, including changing the FDIC’s workplace culture.”

White House Deputy Press Secretary Sam Michel said after Gruenberg’s statement President Joe Biden “soon” he would name his candidate for the position.

“The president will soon nominate a new nominee for FDIC chairman who is committed to these values, protecting consumers and ensuring the stability of our financial system, and we expect the Senate to quickly confirm the nominee,” Michel said.

The announcement follows an earlier statement Monday morning by Sen. Sherrod Brown, D-Ohio, who urged Biden to “immediately appoint a new chairman” and said the Senate “must act on this nomination without delay.”

“There needs to be fundamental changes at the FDIC,” said Brown, who chairs the Senate Banking, Housing and Urban Affairs Committee. statement. “These changes start with new leadership who must fix the agency’s toxic culture and put the men and women who work there and their mission first.”

Brown broke with his Democratic colleagues, who strongly condemned the allegations but stopped short of calling for Gruenberg’s resignation, instead urging him to make changes at the agency.

Law firm Cleary Gottlieb was released in April terrible report Details of an alleged culture of “sexual harassment, discrimination and other interpersonal abuse” at the FDIC.

The 174-page report, compiled from the accounts of more than 500 people, also includes claims that Gruenberg became angry and accused him of violence and verbal abuse. According to the report, the employees called the chairman “aggressive” and “tough”. In one instance, Gruenberg cursed at employees after delivering bad news, the report said.

Photo: Senate Banking Committee Hears Testimony from Financial Regulators Martin Gruenberg
The FDIC chairman testifies before the Senate Banking, Housing and Urban Affairs Committee on Thursday.Kevin Dietsch/Getty Images

The report states: “For too many employees, and for too long, the FDIC has failed to provide a workplace that is free from sexual harassment, discrimination, and other interpersonal violations.

Investigators said that while Gruenberg’s alleged conduct was not a “root cause” of wrongdoing at the FDIC, “we recognize that the culture ‘starts at the top'” when some FDIC employees talk about Chairman Gruenberg.

On May 15, Gruenberg testified Before the House Financial Services Committee, he apologized for misconduct at the agency and promised to implement the report’s recommendations.

Republicans were quick to do so Demand Gruenberg’s removal After the release of the report, Democrats have been reticent to criticize the president. Gruenberg, a Democrat, was nominated by Biden in 2022.

If Gruenberg had left the agency before his replacement had been approved, he would have left the agency FDIC Board of Directors A political stalemate with two Democrats and two Republicans puts the Biden administration in jeopardy financial reform agenda.

according to Bylaws of the FDICVice Chairman Travis Hill, a Republican, will assume the chairman’s duties if the position becomes vacant.

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By 37ci3

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