FDIC Chairman Martin Gruenberg announced behind schedule Monday that he was resigning following a comprehensive investigation into working conditions at the FDIC Allegations of rampant sexual harassment and a hostile work environment.
“In light of recent events, I am prepared to step down from my duties as soon as a successor is identified,” Grünberg said in a statement on Monday. “Until then, I will continue to fulfill my responsibilities as Chairman of the FDIC, including transforming the FDIC’s workplace culture.”
Gruenberg’s announcement of his intention to resign comes hours after Senator Sherrod Brown, a top Democrat and chairman of the Senate Banking Committee, called for “new leadership” at the FDIC.Grünberg joined the FDIC board nearly two decades ago. He has served as the agency’s chairman for nearly 10 of the last 13 years.
Mr. Gruenberg will remain in office until a successor is nominated and confirmed, preventing Republican Vice President Travis Hill from taking the top seat.
President Joe Biden will “soon” announce a novel nominee to lead the FDIC, White House deputy press secretary Sam Michel said in a statement Monday following the news. “We expect the Senate to quickly confirm the nominee,” he added.
Because Gruenberg is staying on until a successor is named, there will be no situation in which Republican-appointed Vice Chairman Travis Hill automatically becomes chairman and the agency is deadlocked with one additional Republican and two Democratic members on the FDIC board.
This investigation has been the subject of several recent articles here at RedState.
Previously on RedState: FDIC scandal nears its conclusion – is massive rain imminent?
House Financial Services Committee calls for FDIC Chairman Grünberg to resign
Grünberg has took responsibility for the circumstances at the FDIC, which actually made his eventual resignation necessary:
Gruenberg testified before lawmakers last week in a previously scheduled hearing with other top financial regulators and said he took “full responsibility” for the report’s findings. “I also recognize my own mistakes as chairman, both in failing to recognize how my temperament affected others in meetings and in failing to recognize deeper cultural problems at the FDIC sooner,” he said.
The FDIC declined to comment beyond Gruenberg’s statement Monday.
The venerable adage about heat and cuisine seems to apply.
Senator Elizabeth Warren (D-MA) reliably had the price The least confident comment on this topic:
However, Democratic Senator Elizabeth Warren described calls for Gruenberg to resign as a “purely political exercise.”
“Her resignation would not improve the culture of the FDIC, but it would give Republicans a veto over banking policy,” she said at the Senate hearing where Gruenberg testified. For them it seemed sufficient if he implemented all of the report’s recommendations, which he promised to do.
Given the nature and timing of the announcement and Mr. Gruenberg’s planned resignation, it is unlikely that this will result in a major shift in the FDIC’s practices or policies.
This is a developing story. We will monitor events and provide you with updates as events warrant.
