Federal Deposit Insurance Corp. (FDIC) Chair Martin
Gruenberg announced he will step down from his role following the results of an
independent investigation into workplace misconduct within the agency during
his tenure. Gruenberg said he plans to leave once a replacement is confirmed.
“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,” Gruenberg said in a statement announcing his
resignation plans. “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.”
Conducted by the law firm of Cleary Gottlieb, the
investigation uncovered evidence of harassment and discrimination within the
agency. The firm recommended the FDIC implement a detailed action plan
consisting of four key components to create a safe, fair and inclusive work
environment for its employees.
These consist of a 24/7 toll-free hotline for the discreet
reporting of harassing behavior, free counseling services for victims of sexual
harassment and discrimination, connecting employees to support groups and other
external resources and the establishment of a support program to help survivors
remain integrated into the workplace and equipped to take advantage of
professional development opportunities after experiencing harassment.
“Hundreds of our colleagues reported painful experiences of
mistreatment and feelings of fear, anger, and sadness,” Gruenberg said in a
separate statement earlier this month. “Many also expressed a sense of hope
that we can achieve positive change for the future. I accept the findings
and recommendations of this report and thank the special review committee for
their exhaustive work.
“I want to also thank everyone who shared their experiences
throughout this process. I know that doing so was difficult. To anyone who
experienced sexual harassment or other misconduct at the FDIC, I again want to
express how very sorry I am. I also want to apologize for any shortcomings on
my part. As chairman, I am ultimately responsible for everything that
happens at our agency, including our workplace culture.”
Sen. Sherrod Brown (D-Ohio) called on President Joe
Biden to act quickly in replacing Gruenberg.
“After chairing last week’s hearing, reviewing the
independent report, and receiving further outreach from FDIC employees to the
Banking and Housing Committee, I am left with one conclusion: there must be
fundamental changes 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.
Brown added that he expects “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.”
Gruenberg has served at the FDIC since August 2005 as chair,
vice chair and director.