FDIC Chair Martin Gruenberg To Resign Following Workplace Harassment Probe

By iHeartRadio

May 20, 2024

Senate Banking Committee Hears Testimony From Financial Regulators
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Martin Gruenberg, the head of the Federal Deposit Insurance Corporation (FDIC), announced his intention to resign following an independent investigation that revealed widespread sexual harassment, discrimination, and bullying within the agency. Gruenberg stated he would continue to serve until a successor is confirmed, during which time he would focus on transforming the FDIC's workplace culture.

"In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed," Gruenberg said in a statement on Monday (May 20). "Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC's workplace culture."

The announcement came shortly after Senator Sherrod Brown, the leading Democrat on the Senate Banking Committee, called for new leadership at the FDIC. Gruenberg has been a member of the FDIC board of directors for nearly two decades and has served as chair for almost 10 of the past 13 years.

The White House Deputy Press Secretary, Sam Michel, stated that President Joe Biden will soon announce a new nominee to lead the FDIC and expects the Senate to confirm the nominee quickly. This will prevent Vice Chair Travis Hill, a Republican appointee, from automatically becoming chair and potentially stalling significant banking regulations.

The independent investigation that led to Gruenberg's resignation was conducted by law firm Cleary Gottlieb Steen & Hamilton. The report confirmed the findings of a Wall Street Journal investigation that revealed a long-standing, problematic culture within the FDIC. The report did not solely blame Gruenberg for the issues but did document instances where he lashed out at subordinates, causing them to delay delivering news they feared would upset him. The report suggested that Gruenberg's temperament may hinder his ability to lead meaningful culture change at the FDIC.

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