WASHINGTON — Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Monday evening he will resign once the Senate confirms a new agency head.
"In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed," Gruenberg said in a statement. "Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC's workplace culture."
The White House said that President Joe Biden will "soon" put forward a new nominee to lead the FDIC.
"While the FDIC is an independent agency, as we have said, the President of course expects the Administration to reflect the values of decency and integrity and to protect the rights and dignity of all employees," a White House spokesperson said in a statement.
"We expect the Senate to confirm the nominee quickly," the spokesperson continued.
Earlier in the day, Sen. Sherrod Brown, D-Ohio, the chairman of the Senate Banking Committee, urged the White House to replace Gruenberg, an important development in the saga that's plagued the agency since the release of a report that detailed serious workplace misbehavior.
Brown, a progressive Democrat running for reelection this year, was
"There must be fundamental changes at the FDIC," Brown said in a statement. "Those changes begin with new leadership, who must fix the agency's toxic culture and put the women and men who work there — and their mission — first."
Most Democratic lawmakers, including Brown, stopped
While the Cleary Gottlieb report didn't find that Gruenberg was a key instigator of the misbehavior, it did point out temperament issues, including verbally berating FDIC employees, that the report said could make it difficult for him to institute the reforms necessary to make the agency a safe place to work.
Brown's office declined to share more details on the change. In his statement, Brown said that the call for Gruenberg to be replaced comes "after chairing last week's hearing, reviewing the independent report, and receiving further outreach from FDIC employees to the Banking and Housing Committee."
Sen. Tim Scott, R-S.C., the ranking member of the Senate banking panel, entered into the record last week a letter from existing FDIC employees who expressed doubt that Gruenberg could make the necessary changes.
"The FDIC employees behind this statement do not have confidence that the Chairman and executive management have the willingness to truly make the cultural and structural changes necessary to fully address the identified in the report," the anonymous employees said in the letter. "The Chairman has communicated the action plan that he oversaw the creation of as proof of his commitment to improving conditions at the FDIC. We, however, do not have confidence that this action plan is meaningful."
Should Gruenberg step down prior to a successor being confirmed, Travis Hill, the vice chairman of the FDIC and a Republican, would become its chairman on an interim basis. That scenario would have deadlocked the FDIC board votes at 2-2, creating a significant obstacle for
"I expect that the entire Banking and Housing Committee and Senate leaders, in both parties, will put politics aside and join this effort to bring new leadership to the agency to ensure a safe workplace for the women and men who protect our financial system," Brown said.
Ebrima Santos Sanneh contributed to this report.
