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FDIC Chairman Martin Gruenberg has said he will resign following a report on poor workplace culture.
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Investigations revealed that the FDIC’s culture was misogynistic and that violators were not punished.
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President Joe Biden will appoint a new FDIC chairman, whom the Senate would then vote on.
The chairman of a major U.S. banking regulator has said he will resign after an independent investigation found widespread sexual harassment and other problems at the agency, and politicians from both major parties criticized his leadership.
The independent report earlier this month found the Federal Deposit Insurance Corporation had a “patriarchal,” “misogynistic” and “insular” work culture. The report also gauged the strong temper of FDIC Chairman Martin Gruenberg.
The 71-year-old Democratic chairman has served in the role for nearly a decade under multiple presidential administrations.
In an email to staff on Monday, cited by The Wall Street Journal, Gruenberg said he would resign once a successor was found. If he were to remain in office, FDIC Vice Chairman Travis Hill, a Republican, would be barred from becoming the agency’s acting chairman.
“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said in the email, according to the Journal. He added that he would continue to fulfill his responsibilities in the meantime, “including transforming the FDIC’s workplace culture.”
The White House said President Joe Biden would soon appoint a new FDIC chairman and that it expected the Senate to move quickly to confirm the nominee.
At a hearing earlier this month, members of the House of Representatives questioned the FDIC’s ability to do its job as a banking regulator and stop bank failures when Gruenberg yelled at employees who brought him bad news.
“I accept the findings of the reports and as chairman I take full responsibility to anyone who has experienced sexual harassment, discrimination or other misconduct at the FDIC,” Gruenberg said during the hearing.
Lawmakers from both major parties asked him to resign during the hearing.
The 234-page summary of the months-long investigation, led by outside law firm Cleary Gottlieb Steen & Hamilton, highlighted long-standing and recent problems at the agency. The report said the FDIC had dismissed numerous harassment complaints and that offenders had been moved or promoted internally.
Investigators said they set up a hotline in mid-January and received more than 500 complaints — largely from current employees — about sexual harassment, discrimination and other issues. The FDIC has approximately 6,000 employees.
The report characterized the FDIC’s culture as “a ‘good’ boys’ club where favoritism is common, wagons circle managers, and senior executives with a known reputation for pursuing romantic relationships with subordinates enjoy long careers without any apparent consequence.”
Read the original article on Business Insider
