Federal Deposit Insurance Corporation Chairman (FDIC) Martin Gruenberg announced Monday he will resign after a probe described a toxic workplace environment at the agency.

“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said in a statement.

“Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture,” he added.


Per CNN:

Gruenberg’s announcement of his intent to resign comes hours after Sen. Sherrod Brown, a top Democrat who leads the Senate Banking Committee, called for “new leadership” at the FDIC. Gruenberg joined the FDIC board of directors almost two decades ago. He’s served as chair of the agency for nearly 10 of the past 13 years.

President Joe Biden will “soon” announce a new nominee to lead the FDIC, White House Deputy Press Secretary Sam Michel said in a statement on Monday following the news. “We expect the Senate to confirm the nominee quickly,” he added. However, there’s no guarantee that will happen, since confirmation processes have been known to drag on for months or longer, at which point Biden may no longer be in office.

With Gruenberg remaining until a successor is named, there won’t be a situation where Vice Chair Travis Hill, a Republican appointee, automatically becomes chair, leaving the agency deadlocked with one other Republican and two Democratic members on the FDIC’s board of directors.

That would have likely stalled significant and controversial banking regulations, such as ramped-up capital requirements, from taking effect.

NBC News reports:

Law firm Cleary Gottlieb in April released a scathing report detailing an alleged culture of “sexual harassment, discrimination, and other interpersonal misconduct” at the FDIC.

The 174-page report, which drew from accounts of more than 500 people, also included, in part, allegations of Gruenberg’s short temper, accusing him of engaging in bullying and verbal abuse. Employees described the chairman as “aggressive” and “harsh,” according to the report. In one instance, Gruenberg allegedly screamed profanities at employees after they delivered bad news, the report said.

“For far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct,” the report said.

Investigators said that while Gruenberg’s alleged behavior is not the “root cause” of misconduct at the FDIC, “we do recognize that, as a number of FDIC employees put it in talking about Chairman Gruenberg, culture ‘starts at the top.’”

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