FDIC Chairman Martin Gruenberg — widely criticized for a toxic workplace at the agency — said Monday he was prepared to resign once a successor is confirmed by the Senate.
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FDIC Chairman Martin Gruenberg — widely criticized for a toxic workplace at the agency — said Monday he was prepared to resign once a successor is confirmed by the Senate.
Win McNamee/Getty Images
The embattled chairman of the Federal Deposit Insurance Corporation says he is ready to resign, but only after a successor is confirmed by the Senate.
FDIC Chairman Martin Gruenberg has been under pressure since a scathing report released two weeks ago revealed a toxic work environment at the agency, with widespread sexual harassment and discrimination. The outside law firm that produced that report also raised questions about whether Gruenberg was the right person to turn things around.
In two combative congressional hearings last week, Republican lawmakers called for the president’s immediate resignation. But some Democrats resisted the proposal, fearing it would leave a Republican vice president at the helm of the agency, which protects the nation’s bank deposits. This would jeopardize the FDIC’s push for stricter capital requirements for banks.
A turning point came Monday when Sen. Sherrod Brown, Democrat of Ohio, the powerful chairman of the Senate Banking Committee, called on the White House to replace Gruenberg.
“There must be fundamental changes at the FDIC,” Brown said in a statement. “These changes start with new leadership, which must address the agency’s toxic culture and prioritize the women and men who work there – and their mission.”
Gruenberg had hoped to weather the political storm. During hearings last week, he apologized for the hostile workplace at the agency but pledged to oversee recommended reforms.
Hours after Brown’s statement, Gruenberg relented, saying he was ready to resign, but only after a Democratic-appointed successor was in place.
“Until then, I will continue to fulfill my responsibilities as Chairman of the FDIC, including transforming the FDIC workplace culture,” he said in a statement.
The White House said President Biden would nominate a new FDIC chairman “soon” and called for rapid Senate confirmation.
“The president of course expects the administration to reflect the values of decency and integrity and to protect the rights and dignity of all employees,” said White House deputy press secretary, Sam Michel.
Republicans have lambasted the idea of leaving Gruenberg as head of the FDIC while the confirmation process plays out.
“If President Biden and Democrats truly wanted to support employees and address the toxic work culture at the FDIC, they would call on Chairman Gruenberg to resign immediately,” said South Carolina Sen. Tim Scott, the top Republican. plan of the banking committee. “This withdrawal strategy clearly shows that this administration is prioritizing its political agenda over worker protections.”
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