FDIC Chairman Martin Gruenberg has been widely criticized for toxic workplaces at the agency.
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Win McNamee/Getty Images
FDIC Chairman Martin Gruenberg has been widely criticized for toxic workplaces at the agency.
Win McNamee/Getty Images
The embattled chairman of the Federal Deposit Insurance Corporation says he is ready to resign, but only if his successor is confirmed by the Senate.
FDIC Chairman Martin Gruenberg has been under pressure since a scathing report two weeks ago revealed a hostile work environment and widespread sexual harassment and discrimination at the agency. The outside law firm that produced the report also questioned whether Grunberg was the right person to turn things around.
In two heated congressional hearings last week, Republican lawmakers called on the chairman to resign immediately. But some Democrats have resisted, fearing it would put a Republican vice chair in charge of the agency, which is responsible for protecting the nation’s bank deposits. That would jeopardize the FDIC’s efforts to impose stricter capital requirements on banks.
The turning point came Monday when Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, called on the White House to remove Grunberg.
“The FDIC must make fundamental changes,” Brown said in a statement. “These changes begin with new leadership, who must address the agency’s toxic culture and transform the women and men who work there and their mission.” Put it first.”
Grunberg had hoped to weather the political storm. At last week’s hearing, he apologized for the agency’s hostile workplace but vowed to oversee recommended reforms.
Hours after Brown issued his statement, Grunberg caved and said he was willing to resign, but only if a Democratic-designated successor was in place.
“Until then, I will continue to carry out my responsibilities as FDIC Chairman, including transforming the FDIC’s workplace culture,” he said in a statement.
The White House said President Biden will nominate a new FDIC chair “soon” and urged the Senate to quickly confirm him.
“The President certainly expects a government that embodies the values of decency and integrity and protects the rights and dignity of all employees,” White House deputy press secretary Sam Michel said.
Republicans have blasted the idea of Grunberg remaining at the helm of the FDIC while the confirmation process proceeds.
“If President Biden and Democrats were truly serious about supporting employees and correcting the toxic work culture at the FDIC, they would ask Chairman Glenn Berger to Stand down immediately. “This delaying tactic is a clear sign that this administration prioritizes its political agenda over protecting workers. “
