(WASHINGTON) The head of the U.S. banking regulator FDIC announced Monday that he will soon step down after reports of a longstanding “toxic culture” within the agency and called for the resignations of Republican and Democratic members of Congress.
“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Martin Grunberg, chairman of the FDIC, the agency that insures bank deposits in the United States, announced in a statement.
“Until then, I will continue to fulfill my responsibilities as chairman of the FDIC, including changing the FDIC's workplace culture,” he added.
The White House indicated Monday evening that Joe Biden will propose a new nominee to head the FDIC “soon.”
“We expect the Senate to confirm the nominee soon,” White House spokesman Sam Michael said in an email.
Martin Grunberg, who will head the FDIC from January 2023, after serving as chairman, director and vice chairman since 2005, was heard in Congress Wednesday and Thursday.
He was questioned at length by elected officials and senators in the House of Representatives over the results of an independent investigation released May 7, which described the FDIC as a workplace with a “culture of misogyny,” “patriarchy,” insular” and “obsolete””.
Several elected Republican officials later called for his resignation, while Democrats kept their distance to prevent a Republican from taking over the agency's leadership.
But on Monday, Democrat Sherrod Brown, the chairman of the Senate Banking Committee, called for his departure: “There must be fundamental changes at the FDIC,” he said in a press release.
“These changes start with new leadership,” he continued.
A number of supporting affidavits conducted by Cleary Gottlieb Steen & Hamilton at the FDIC's request refer to sexist, racist and homophobic comments, harassment, mocking of employees with disabilities, etc.
The survey also showed “widespread fear of reprisals”. […] This has led to underestimation of abuses over the years.”
Reports of inappropriate behavior have led to some sanctions. […] From 2015 to 2023, nothing worked […] Any disciplinary action more serious than suspension
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