FDIC Chairman Martin Gruenberg announced late Monday that he will resign following an extensive investigation into working conditions at FDIC, including accusations of rampant sexual harassment and a hostile work environment.
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“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said in a statement on Monday. “Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.”
Gruenberg’s announcement of his intent to resign comes hours after Sen. Sherrod Brown, a top Democrat who leads the Senate Banking Committee, called for “new leadership” at the FDIC. Gruenberg joined the FDIC board of directors almost two decades ago. He’s served as chair of the agency for nearly 10 of the past 13 years.
Mr. Gruenberg will stay in place until a replacement is nominated and confirmed, which prevents Republican Vice Chairman Travis Hill from taking the top seat.
President Joe Biden will “soon” announce a new nominee to lead the FDIC, White House Deputy Press Secretary Sam Michel said in a statement on Monday following the news. “We expect the Senate to confirm the nominee quickly,” he added.
With Gruenberg remaining until a successor is named, there won’t be a situation where Vice Chair Travis Hill, a Republican appointee, automatically becomes chair, leaving the agency deadlocked with one other Republican and two Democratic members on the FDIC’s board of directors.
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This investigation has been the subject of several recent articles here at RedState.
Previously on RedState: FDIC Scandal Nearing a Conclusion – Is a Hard Rain About to Fall?
House Financial Services Committee Calls for Resignation of FDIC Chairman Gruenberg
Gruenberg has accepted the responsibility for conditions at FDIC, which made his eventual resignation effectively a necessity:
Gruenberg testified before lawmakers last week in a previously scheduled hearing with other top financial regulators, saying he takes “full responsibility” for the findings of the report. “I also acknowledge my own failures as Chairman, both in failing to recognize how my temperament in meetings impacted others and for not having identified deeper cultural issues at the FDIC sooner,” he said.
The FDIC declined to comment beyond Gruenberg’s statement on Monday.
The old saying about heat and kitchens would seem to be applying.
Reliably, Senator Elizabeth Warren (D-MA) had the prize for the least self-aware comment on this issue:
However, Democratic Sen. Elizabeth Warren labeled the calls Gruenberg received to resign “purely political exercise.”
“Your resignation would do nothing to improve the culture of the FDIC but it would give Republicans a veto over bank policy,” she said at the Senate hearing where Gruenberg testified. For her, it appeared it would be sufficient for him to see through implementing all the recommendations of the report, which he said he would.
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Given the nature and timing of Mr. Gruenberg’s announcement and planned resignation, it’s unlikely that this will result in a major shake-up of the FDIC’s practices or policies.
This is a developing story. We will monitor and bring you updates as events warrant.