The chairman of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, announced his resignation on Monday following a report uncovering widespread sexual misconduct and a "patriarchal" culture at the agency.
Gruenberg stated, "In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed." He emphasized his commitment to continue fulfilling his duties until then, including efforts to transform the FDIC's workplace culture.
Having served as FDIC chairman since 2005, Gruenberg was reappointed by President Joe Biden. However, his resignation was urged by both Democratic and Republican members of the Senate Banking Committee, particularly after the release of an independent report commissioned by the FDIC in response to allegations of workplace misconduct detailed in Wall Street Journal articles.
Senator Sherrod Brown emphasised the need for "fundamental changes" at the FDIC, including new leadership to address the agency's toxic culture and prioritize its employees and mission.
The report, published earlier this month, revealed the FDIC's failure to provide a safe workplace free from sexual harassment and discrimination, attributing it to a "patriarchal, insular, and risk-averse culture." It highlighted widespread underreporting of misconduct due to fear of retaliation and criticized management's inadequate response.
While the report noted Gruenberg's reputation for having a temper, it clarified that his conduct wasn't the root cause of the agency's issues but underscored that workplace culture starts at the top.
In response to Gruenberg's resignation offer, the White House expressed gratitude for his willingness to remain at the FDIC until his successor is confirmed. They reiterated the administration's commitment to decency, integrity and the protection of employees' rights and dignity. President Biden is expected to nominate a new chair dedicated to upholding these values.
