Top Democrats ask Biden to replace FDIC chairman | Wilnesh News

Sen. Sherrod Brown, D-Ohio, called on President Joe Biden on Monday to replace Federal Deposit Insurance Corporation Chairman Martin Grunberg following widespread allegations of sexual harassment and misconduct within the agency.

“Fundamental changes must be made at the FDIC,” Brown, who chairs the Senate Banking, Housing and Urban Affairs Committee, said in a statement. statement. “These changes begin with new leadership, who must address the agency’s toxic culture and put the women and men who work there and their mission first.”

Brown continued: “That is why I am calling on the President to immediately nominate a new Chairman who can lead the FDIC during this challenging time, and for the Senate to take immediate action on that nomination.”

Brown’s statement differs from fellow Democrats, who have largely condemned the allegations but stopped short of urging Grunberg to resign, instead calling on him to push for changes at the agency. Brown’s announcement could mark the beginning of the end for the FDIC’s top regulator, whom Biden nominated to the position in 2022.

Published in April by Cleary Gottlieb Law Firm scathing report It details what the FDIC calls a culture of “sexual harassment, discrimination and other interpersonal misconduct.”

The 174-page report, which synthesized accounts from more than 500 people, also included some accusations of a temper that accused Grunberg of bullying and verbal abuse. Employees described the chairman as “aggressive” and “harsh”, the report said. On one occasion, Grunberg allegedly yelled obscenities at employees after they delivered bad news, the report said.

“For too many employees, the FDIC has long failed to provide a workplace free from sexual harassment, discrimination and other interpersonal misconduct,” the report said.

Investigators said that while Grunberg’s alleged conduct was not the “root cause” of the FDIC’s misconduct, “we do recognize, as some FDIC employees said about Chairman Grunberg, that culture’ Start at the top'”.

“Grunberg’s reputation raises questions about leadership’s credibility in responding to the crisis and its ‘moral authority’ to lead cultural transformation,” investigators added in the report.

The FDIC declined to comment on Brown’s call for Biden to replace Grunberg when contacted by CNBC.

Brown stopped short of calling on Grunberg to resign.

Grunberg testified on May 15 He apologized for the agency’s misconduct before the House Financial Services Committee and pledged to implement the report’s recommendations.

Republicans are quick to Call for Grunberg’s ouster Democrats have so far been more restrained in their criticism of the chairman, who is also a Democrat, following the report’s release.

If Grunberg leaves the agency before a replacement is confirmed, it will leave the agency FDIC Board of Directors The political deadlock with two Democrats and two Republicans jeopardizes the Biden administration’s financial reform agenda.

according to FDIC CharterIf the position becomes vacant, Vice Chairman Travis Hill (Republican) will assume the duties of chairman.