FDIC chair to resign after pressure from lawmakers

Federal Deposit Insurance Corp. Chair Martin Gruenberg announced Monday he will be stepping down amid rising calls from federal lawmakers for him to resign following reports of a toxic workplace environment at the banking regulator.

“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said in a statement released by the agency. “Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.”

FDIC CHAIR GRUENBERG REFUSES TO RESIGN

Gruenberg, who has spent nearly two decades in leadership roles at the FDIC, came under fire after a Wall Street Journal expose in November revealed claims of an abusive workplace culture at the agency. An external review that followed found sweeping reports of employee mistreatment and sexual harassment.

Martin Gruenberg, chair of the Federal Deposit Insurance Corp., announced Monday that he will step down. (Celal Gunes / Anadolu Agency / File / Getty Images)

He testified for several hours before the Senate’s Committee on Banking, Housing, and Urban Affairs last week, where he faced steady criticism from Republicans and Democrats who expressed anger, dismay and disbelief at the extent of the issues at the FDIC.

KEY DEMOCRAT CALLS FOR FDIC CHIEF’S OUSTER OVER ‘TOXIC CULTURE’ THAT INCLUDES SEXUAL HARASSMENT

Earlier Monday, Senate Banking Committee Chair Sherrod Brown, a Democrat from Ohio, issued a statement in which he called for new leadership at the FDIC and called on President Biden to “immediately nominate a new chair” to replace Gruenberg.

Sen. Sherrod Brown, D-Ohio, chair of the Senate Banking, Housing, and Urban Affairs Committee, is shown during a hearing in Washington, D.C., on May 16, 2024. (Allison Robbert / Bloomberg / Getty Images)

Notably, Brown did not call for Gruenberg to immediately resign, as many Republicans in Congress have. If Gruenberg were to leave the agency without a confirmed replacement, leadership of the FDIC would fall to Travis Hill, the agency’s vice chair and a Republican. The agency would then be deadlocked 2-2.

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Reuters contributed to this report.