FDIC Chairman Martin Gruenberg — widely criticized for a toxic work environment at the agency — said Monday he is willing to step down once his successor is confirmed by the Senate.
Win McNamee/Getty Images
hide caption
caption conversion
Win McNamee/Getty Images
FDIC Chairman Martin Gruenberg — widely criticized for a toxic work environment at the agency — said Monday he is willing to step down once his successor is confirmed by the Senate.
Win McNamee/Getty Images
The chairman of the troubled Federal Deposit Insurance Corporation said he is prepared to step down, but only after a successor is confirmed by the Senate.
FDIC Chairman Martin Gruenberg has been under pressure since a scathing report was revealed two weeks ago. a toxic working environment at the agency, with widespread sexual harassment and discrimination. The outside law firm that issued that report also raised questions about whether Gruenberg was the right person to turn things around.
At two contentious Congressional hearings last week, Republican lawmakers called for the chairman’s immediate resignation. But some Democrats oppose it, fearing it would put a Republican vice president in charge of the agency that protects the nation’s bank deposits. That would jeopardize the FDIC’s push for stricter capital requirements for banks.
A turning point came Monday when Sen. Sherrod Brown, D-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. “Those changes start with new leadership, who must fix the agency’s toxic culture and put the women and men who work there – and their mission – first.”
Gruenberg had hoped to weather the political storm. During last week’s hearing, he apologized for the hostile work environment at the agency but vowed to oversee proposed reforms.
Hours after Brown’s statement, Gruenberg caved in and said he was willing to resign, but only after a Democratic Party-appointed successor had been named.
“Until then, I will continue to fulfill my responsibilities as FDIC Chairman, including transforming FDIC’s workplace culture,” he said. statement.
The White House said President Biden will soon nominate a new FDIC chairman and called on the Senate to quickly confirm it.
“Of course, the President 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 oppose the idea of Gruenberg taking the helm of the FDIC while the confirmation process takes place.
“If President Biden and Democrats are serious about supporting employees and fixing the culture,” said South Carolina Sen. Tim Scott, the ranking Republican on the banking committee, Due to the FDIC’s malicious work, they will demand Chairman Gruenberg’s immediate resignation.” “This drawn-out strategy makes it clear that this administration is prioritizing their political agenda over protecting workers.”
