FDIC chair’s resignation pressure rises with key Senate Democrat urging change

Senate Banking Chairman Sherrod Brown wants Martin Gruenberg to step down as head of the Federal Deposit Insurance Corp. and urged President Joe Biden to “immediately” nominate a replacement.

Brown’s call on Monday significantly ups the pressure on Gruenberg, who has already faced calls from many Republicans to resign. Last week, lawmakers from both political parties chided the FDIC chairman over his leadership during congressional hearings after a scathing report on the agency’s workplace culture.

“I am left with one conclusion: there must be fundamental changes at the FDIC,” Brown said. “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.” He added that he wants a new chair installed “without delay.”

Problems with the FDIC’s office culture were spotlighted this month in a report by a law firm reflecting complaints from more than 500 people detailing “sexual harassment, discrimination and other interpersonal misconduct.” That probe was prompted by a Wall Street Journal report last year that female bank examiners had left the FDIC because of its “sexualized, boys’ club environment.”

The law firm report also questioned whether Gruenberg was the best person to lead a “cultural and structural transformation” it said was needed at the regulator.

Gruenberg has vowed to fix the problems, repeatedly apologized to employees and has said the regulator is already undertaking measures recommended in the law firm’s report.

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