FDIC Chairman Martin Gruenberg has announced that he is resigning following an investigation into the working conditions of FDIC. This included accusations of sexual harassment and a hostile workplace.
In a Monday statement, Gruenberg stated that he was “prepared to step down once a successor has been confirmed.” “Until then, I will continue fulfilling my responsibilities as the Chairman of FDIC, which includes the transformation of FDIC’s work culture.”
Gruenberg announced his intention to resign just hours after Sherrod Brown (a leading Democrat and the chairman of the Senate Banking Committee) called for a “new leadership” in the FDIC. Gruenberg was appointed to the FDIC Board of Directors almost 20 years ago. He has served as chairman of the FDIC for almost 10 years.
Mr. Gruenberg’s position will remain in place until the nomination and confirmation of a successor, which would prevent Republican Vice Chairman Travis Hill to take over.
Sam Michel, White House Deputy press secretary, said that President Joe Biden would “soon announce” a new nominee for the FDIC. He added, “We expect that the Senate will confirm the nominee as soon as possible.”
Gruenberg’s decision to remain until a successor has been named means that Travis Hill, the Republican Vice Chair, will not automatically become the FDIC Board’s chair. Instead, the FDIC board would be stuck with two Democratic and one Republican member.
Gruenberg accepted responsibility for the conditions at FDIC. This made his resignation a necessity.
Gruenberg, who was scheduled to testify before lawmakers with other financial regulators last week as part of a hearing that had been previously set up, said he took “full accountability” for the report’s findings. “I also admit my failures, both for failing to realize how my temper in meetings affected others and not having identified deeper culture issues at the FDIC earlier,” he said.
The FDIC refused to comment on Gruenberg’s Monday statement.
It would appear the old saying “heat and kitchens” is still relevant.
Senator Elizabeth Warren (D – MA) won the award for the most self-aware statement on this issue.
The Democratic Senator Elizabeth Warren, however, referred to the calls Gruenberg had received asking him to resign as a “pure political exercise”.
She said, “Your resignation will not improve the culture at the FDIC. But it will give Republicans the power to veto bank policies,” during the Senate hearing in which Gruenberg gave testimony. She thought it was enough for him to implement all of the recommendations in the report as he had promised.
It’s unlikely, given the timing and nature of Mr. Gruenberg’s resignation announcement and announced resignation, that there will be a significant shake-up in the FDIC’s policies or practices.
