Key Takeaways:
- Martin Gruenberg, FDIC chairman since 2005, will step down following a damning investigation into the agency’s workplace culture.
- Gruenberg’s resignation follows intense bipartisan criticism and calls from lawmakers for his removal due to the mishandling of misconduct allegations.
- The crypto community has reacted positively to Gruenberg’s resignation, citing his controversial stance on digital assets.
Martin Gruenberg, chairman of the U.S. Federal Deposit Insurance Corporation (FDIC), will step down following a scathing investigation that revealed a toxic workplace culture at the bank regulator.
Gruenberg, who has held the chair position since August 2005, announced on May 20 that he will resign once a successor is confirmed.
FDIC chair Martin Gruenberg to resign after sex-harassment, misconduct at agency https://t.co/4eW5iqTf18 pic.twitter.com/P8J9mr6tcM
— New York Post (@nypost) May 20, 2024
Until then, he will continue his responsibilities and work on transforming the FDIC’s workplace culture.
This decision follows a May 7 third-party investigation into allegations of sexual harassment and other misconduct at the FDIC, which also scrutinized management’s response to these issues.
“I am so tired of white men failing up. This lack of accountability is shameful, inadequate, and deeply unsatisfactory, and it is retraumatizing.”
— The Recount (@therecount) May 15, 2024
— Rep. Ayanna Pressley slams Chair Martin Gruenberg for a report detailing rampant sexual misconduct and discrimination at the FDIC. pic.twitter.com/71yLIIYg7A
On May 15, Gruenberg testified before Congress regarding the widespread allegations and faced intense bipartisan criticism from lawmakers, who were dismayed and outraged by the reported misconduct.
Lawmakers, including Senate Banking Chair Sherrod Brown, have called for Gruenberg’s resignation and urged President Biden to nominate a new FDIC chair.
The White House has indicated its intention to do so, although Senator Elizabeth Warren has expressed confidence in Gruenberg’s ability to enact necessary changes within the agency.
JUST IN: 🇺🇸 FDIC Chair Martin Gruenberg resigns following toxic work environment reports.
— Watcher.Guru (@WatcherGuru) May 20, 2024
Gruenberg’s impending departure has been celebrated by the crypto community. Nic Carter, a partner at Castle Island Ventures, called it “the best day ever.”
Digital asset industry lawyer John Deaton criticized Senator Warren for her support of Gruenberg, accusing her of trying to protect a disgraced official.
Gruenberg is believed to have played a significant role in Operation Choke Point 2.0, an initiative led by the FDIC to discourage banks from providing services to crypto firms.
Breaking: FDIC Chairman Martin Gruenberg will resign, bowing to pressure after an external investigation found widespread sexual harassment at the agency https://t.co/Y4j33R27eb https://t.co/Y4j33R27eb
— The Wall Street Journal (@WSJ) May 20, 2024
In an October 2022 speech, Gruenberg compared crypto assets to the risky financial products that contributed to the 2008 financial crisis.
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