Federal Deposit Insurance Corp. Chairman Martin Gruenberg finally announced his resignation Monday following a months-long scandal over sexual harassment and other misconduct at the top banking regulator.
Gruenberg said he will step down from his role once a replacement has been confirmed.
The White House will name a replacement for Mr. Gruenberg, deputy press secretary Sam Michel said in a statement. Gruenberg’s five-year term ends in 2028.
Earlier, Democratic leaders had called for the FDIC chairman to be removed after an outside investigation revealed widespread reports of employee abuse and sexual harassment.
Senate Banking Committee Chairman Sherrod Brown said in a statement that “fundamental changes” are needed at the agency, adding that he hopes President Joe Biden will immediately name a replacement, and that the Senate will He added that this should be done quickly. Mr. Brown is the most senior Democrat seeking Mr. Gruenberg’s replacement and is increasing pressure on the FDIC chairman.
Mr. Gruenberg, 71, has been with the FDIC since 2005 and is the longest-serving FDIC director in the agency’s 89-year history. During that time, he served as chairman twice, the first time under President Barack Obama and the second time under President Joe Biden.
The departure of Mr. Gruenberg, a Democratic and Wall Street critic who served as the agency’s senior leader for nearly two decades, comes at a critical time for the agency. It has only been one year since the three major banks went bankrupt, and many financial institutions are still struggling in the midst of this crisis. Federal Reserve Interest Rate Increase.
Last week, Gruenberg testified before Congress along with several other banking regulators. He vowed to take steps to address long-standing cultural issues at the agency and his own personal conduct after an investigation found multiple instances of him throwing tantrums at subordinates. Ta.
But Republicans and Democrats alike expressed skepticism that Gruenberg could overhaul the agency he has led for nearly two decades, when he begins his current five-year term as FDIC chairman in January 2023. He also served as chairman from November 2012 to mid-2018.
“After chairing last week’s hearing, reviewing the independent report, and receiving additional support from FDIC staff to the Banking and Housing Committee, I came to one conclusion: There has to be change, and that change starts with new leadership,” Brown said in a statement.
The FDIC is working with the Federal Reserve Board and the Office of the Comptroller of the Currency on several rulemaking projects that would strengthen requirements for large banks, including a controversial plan to increase capital requirements for large banks.
