FDIC Chairman to Resign After Scandal

(RepublicanDaily.org) – Martin Gruenberg, who chairs the Federal Deposit Insurance Corporation, is set to step down after an investigation into the agency’s workplace culture revealed widespread sexism, sexual harassment, and toxic work practices.

In a statement released to the press, Gruenberg said that he will resign immediately once President Joe Biden names a successor to head the agency. He also promised to begin a process to address the misconduct and sexual harassment in the FDIC.

A number of Democrats and Republicans alike have also called for Gruenberg to resign and be replaced. Democratic Ohio Senator Sherrod Brown has led the calls from the left for the FDIC chair to resign, saying that installing “new leadership” in the agency would be instrumental in ensuring that “fundamental changes” are made in the FDIC’s workplace culture. Brown called on Biden to nominate a new chair post-haste, and for the Senate to affirm the choice once it is made.

Another segment of Democrats, however, are not calling for Gruenberg to step down, but only to institute the proper changes in the agency. If Gruenberg steps down before a replacement is made, the agency would be headed in the interim by Vice Chairman Travis Hill, a Republican. The board of the FDIC would also be deadlocked with two-to-two Democrats to Republicans.

The review of the FDIC’s workplace culture was done by an external and independent body, is mainly comprised of accounts from more than 500 people. While Gruenberg himself is not implicated in any case of sexual harassment, the FDIC chair is reputed to have a very short fuse, with employees describing him as “harsh” and “aggressive”. The 174-page report also says that Gruenberg bullied employees and would even scream profanities at them in some instances.

“For far too many employees and for far too long,” the report read, “the FDIC has failed to provide” a workplace that keeps workers safe from discrimination, sexual harassment, and other forms of misconduct.

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