US regulator head Gruenberg to resign amid investigation findings
Date
5/22/2024 4:08:35 AM
(MENAFN) federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg will step down from his position following an independent investigation in April that uncovered extensive instances of hostile and abusive behavior, sexual harassment, and discrimination within the agency.
"It has been my honor to serve at the FDIC as Chairman, Vice Chairman, and Director since August of 2005," Gruenberg stated in a declaration on Monday. "Throughout that time I have faithfully carried out the critically important mission of the FDIC to maintain public confidence and stability in the banking system."
"In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed. Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture," he further mentioned.
On Monday, Senator Sherrod Brown, representing the Democratic party from Ohio, advocated for a change in leadership at the FDIC.
"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," chairman of the Senate Committee on Banking, Housing, and Urban Affairs, Senator Sherrod Brown, emphasized the need for new leadership at the FDIC.
Additionally, Senator Sherrod Brown urged Leader Joe Biden to promptly nominate a new chair for the FDIC, the primary regulatory agency overseeing the American banking sector.
The FDIC appointed the law firm Cleary Gottlieb Steen & Hamilton LLP to carry out an independent review of allegations concerning sexual harassment and interpersonal misconduct within the agency, involving "hostile, abusive, unprofessional, or inappropriate conduct, as well as management’s response to these allegations."
"Over 500 individuals bravely reported into our hotline, often painfully and emotionally recounting experiences of sexual harassment, discrimination, and other interpersonal misconduct that they have suffered at the FDIC," the law firm stated in its review report, released last month.
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