Federal Deposit Insurance Corp Chair Martin Gruenberg has announced his resignation due to a scandal involving sexual harassment and misconduct at the agency, following pressure from top Democrats. Gruenberg, who had been at the FDIC since 2005, stated he would step down once a successor is confirmed. The White House will nominate a replacement for him, as his term ends in 2028.
Senate Banking Committee Chairman Sherrod Brown called for Gruenberg’s replacement after an external review uncovered widespread mistreatment and harassment at the agency. Brown urged President Joe Biden to quickly nominate a new chair to bring about fundamental changes at the FDIC.
Gruenberg’s departure comes at a critical time for the agency, amidst bank failures and struggles with Federal Reserve interest rates. Despite vowing to address cultural issues and personal conduct following the review, there were doubts from both Republicans and Democrats about his ability to overhaul the agency. Gruenberg had served as the chair of the FDIC twice, under Presidents Obama and Biden.
The FDIC is currently working on rulewriting projects with the Federal Reserve and the Office of the Comptroller of the Currency to tighten requirements on larger banks. Gruenberg’s resignation marks the need for new leadership to address the challenges facing the agency.
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