FDIC chair faces calls to resign over report of sexual misconduct at agency

Pressure is mounting on US Federal Deposit Insurance Corporation (FDIC) chairman Martin Gruenberg to resign over his handling of allegations of sexual misconduct at the agency and his role in creating a toxic workplace.

Earlier this week, the Wall Street Journal published a damning report on a culture of sexual harassment and misogyny at the federal agency which led at least 20 women to leave their roles. A follow up report from the outlet alleged that Gruenberg “set a tone that left alleged harassment and discrimination unpunished” at the FDIC.

In the hours after the latter report’s emergence, the agency cancelled a public board meeting scheduled for Thursday minutes after it had been due to start.

In congressional testimony, Gruenberg said that he was troubled by the reporting. He said that the FDIC had successfully acted on recommendations from an internal watchdog in 2020, but added that more work needed to be done.

Senior US lawmakers have raised their own concerns over the reports, with Senate Banking Committee chair senator Sherrod Brown, a Democrat, calling on the FDIC’s inspector general to investigate. Influential legislator senator Elizabeth Warren also said she supported a review.

There have been calls on Gruenberg to resign from the right, with Tim Scott, the top Republican on the Banking Committee, saying that Gruenberg should “seriously consider” his position. Other Republicans on the committee John Kennedy and Thom Tills have explicitly called for Gruenberg’s resignation.

Should Gruenberg vacate his position, he would be replaced by his Republican vice chair Travis HIll.

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