In Washington, D.C., Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg announced his resignation effective January 19th. This announcement prompted a response from Ranking Member Tim Scott (R-S.C.), who has been vocal about his concerns regarding Gruenberg's leadership.
"I’ve called on Martin Gruenberg to resign from the agency for almost a year – yet he’s continued to play politics at the expense of the FDIC’s employees. This announcement is long overdue, but Chairman Gruenberg’s decision to remain in office until the last minute demonstrates his failure to accept accountability for his actions. I look forward to new leadership at the FDIC who will support the agency’s employees, hold bad actors accountable, and restore a respectable office culture. The FDIC’s mission is too important not to," said Ranking Member Scott.
The call for Gruenberg's resignation comes after reports of sexual harassment and a toxic workplace culture within the FDIC. Ranking Member Scott had previously promised rigorous oversight of the agency to address these issues and ensure accountability.
In December, Scott led fellow Banking Committee Republicans in urging Chairman Gruenberg to provide detailed information on these allegations and step down from his position. Despite promises of transparency, there was little communication from Gruenberg, prompting Scott to renew his demands in March.
An independent report investigating these allegations further fueled calls for Gruenberg's resignation. During a Senate Banking Committee hearing with Chairman Gruenberg, Scott reiterated his request for him to step down and formally asked for a separate hearing on the report's findings.
Additionally, an August report by the FDIC Office of Inspector General highlighted failures in implementing an effective sexual assault prevention program at the agency. This report reinforced Scott's demand for respect towards FDIC employees and for Gruenberg's resignation.
FDIC employees wishing to disclose information about misconduct confidentially can contact Ranking Member Scott’s Committee staff via email or phone.