This week, FDIC Chairman Martin Gruenberg finally announced that he would step down from the regulatory entity that is supposed to ensure the stability of the U.S. banking system — but only after his successor has been confirmed by the U.S. Senate.
"It has been my honor to serve at the FDIC as Chairman, Vice Chairman, and Director since August of 2005," Gruenberg said of his 15+ years within the agency where disgusting conduct has been documented. "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," he added in a transparent attempt to bolster his tarnished legacy. "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 defiantly added amid calls for his immediate resignation.
Gruenberg's planned departure comes after devastating reports revealed a toxic and abusive work environment rife with sexual harassment, racism, and vulgar conduct at the FDIC that has gone apparently unchecked by its chairman despite his insistence that he would "clean up" the agency. To be clear, the "workplace culture" was not simply one where employees were overworked or had their efforts go unrecognized — it was much, much worse.
Senator John Kennedy (R-LA) took Gruenberg to task for his failure to lead the FDIC with integrity in a recent Senate hearing in which he compared Gruenberg's attempts to remedy the problems plaguing the FDIC to "asking Alec Baldwin to conduct a course in gun safety." (Note: the following video contains graphic language from the report on misconduct at the FDIC.)
𝐇𝐎𝐋𝐘 𝐒𝐂𝐇𝐈𝐅𝐅𝐓
— American Archer (@CalenArcher) May 17, 2024
Senator John Kennedy puts FDIC Chairman Martin Gruenberg ON BLAST
Not only did he repeatedly call for him to resign due to virtually no oversight and abhorrent employee behavior
You would NEVER expect to hear Sen. Kennedy say what he does in this clip pic.twitter.com/b9gVdD2icX
After overseeing and evidently tolerating such an environment, it's hard to believe Gruenberg is being allowed to make a graceful exit on an uncertain timeline rather than being forced out immediately.
In a statement following Gruenberg's announcement that he would, eventually, step down from his post, House Financial Services Committee Chairman Patrick McHenry (R-NC) said the FDIC chairman "is once again putting Democrats’ politicized regulatory agenda ahead of the wellbeing of the FDIC and the stability of our financial system."
"While his intent to resign will be welcome news to the FDIC employees who have been subjected to an appalling culture of misconduct and abuse, this announcement is too little, too late," McHenry emphasized. "Deep institutional changes at the FDIC are needed now."
Reminding that there is "a clear succession plan in place and the agency’s operations would continue unabated if he rightly stepped down today," McHenry said Gruenberg's refusal to step aside right away is "yet another example of Chair Gruenberg’s refusal to accept responsibility for his actions. I urge Democrats to join me in calling for Chair Gruenberg’s immediate termination."
Echoing McHenry's statement, Senate Banking Committee Ranking Member Tim Scott (R-SC) called on Democrats to follow through on their tough talk that hasn't been backed up by action to remedy the sordid conditions at the FDIC.
"If President Biden and Democrats were really serious about supporting employees and fixing the FDIC’s toxic work culture, they’d ask Chairman Gruenberg to step down immediately," Scott declared in a statement. "This draw-it-out strategy makes it clear that this administration is prioritizing their political agenda over protecting workers."
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