(NewsWorthy.news) – The White House announced last Monday that the chairman of the Federal Deposit Insurance Corporation will be stepping down, just weeks after the release of a report about the toxic workplace culture at the agency.
FDIC Chairman Martin Gruenberg will leave the agency once his successor has been appointed. According to the White House, President Biden is expected to nominate a new FDIC chair “soon.”
In a statement on Monday, Deputy Press Secretary Sam Michel said the president expected the FDIC to “protect the rights and dignity” of its employees and “reflect the values of decency and integrity.”
The news of Gruenberg’s impending departure was announced the same day Senate Banking Committee Chairman Sherrod Brown (D-OH) called for “new leadership” at the FDIC in light of the May 7 independent report released by the law firm Cleary Gottlieb Steen & Hamilton that cited multiple incidents of harassment, stalking, and other workplace violations at the agency.
During two days of hearings before the Senate Banking Committee last week, Gruenberg faced harsh questioning from committee members on the details contained in the independent report.
In calling for Gruenberg’s removal, Chairman Brown said that after last week’s hearings and in light of the report, he was calling on the president to nominate a new FDIC chairman who could lead the agency through “this challenging time.”
Republican lawmakers, who have been calling for the White House to remove Gruenberg for some time, criticized the president for not demanding his immediate resignation following the release of the May 7 report.
Gruenberg, who has been with the FDIC for nearly two decades, was in his second full term as chairman.
According to the independent review, Gruenberg’s lengthy tenure with the FDIC made him primarily responsible for the toxic environment at the agency.
The report was based on a review of over 500 complaints made against the FDIC by employees, including one from a woman who alleged that she was stalked and harassed by a coworker even after reporting his behavior.
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