FDIC chair faces calls to resign after reports of rampant sexual harassment at bank regulator

Martin Gruenberg, nan chair of nan Federal Deposit Insurance Corporation, is facing an influx of calls to resign aft a blistering, 234-page study released Tuesday revealing widespread intersexual harassment and different misconduct plaguing nan national slope regulator.

The damning report, which was released by rule patient Cleary Gottlieb Steen & Hamilton and prompted by a Wall Street Journal investigation successful November, did not find that Gruenberg unsocial was responsible for nan FDIC’s toxic workplace.

However, “we do admit that, arsenic a number of FDIC labor put it successful talking astir Chairman Gruenberg, civilization ‘starts astatine nan top,’” nan study said.

Martin Gruenberg, nan chair of nan Federal Deposit Insurance Corporation, is facing an influx of calls to resign aft a study by a rule patient confirmed that nan regulator’s agency is teeming pinch intersexual harassment and different misconduct. Getty Images

Cleary Gottlieb besides documented respective instances wherever Gruenberg — who’s served arsenic FDIC chair since 2023, but has been a leader astatine nan agency since joining its committee successful 2005 — lashed retired astatine subordinates “particularly erstwhile being delivered bad news aliases conveyed views pinch which he disagrees.”

The incidents person created an ambiance of fearfulness astatine nan firm, wherever staffers clasp retired successful delivering perchance upsetting news to Gruenberg, CNN earlier reported.

Gruenberg’s temperament “may inhibit his expertise to found spot and assurance successful starring meaningful civilization change,” nan study added.

The calls for Gruenberg — a Democrat who was appointed by President Joe Biden — to measurement down are being led by Republican lawmakers.

On nan left, only Rep. Bill Foster (D-Ill.) has demanded that Gruenberg leave, according to CNN.

If Gruenberg caves successful and does really resign, location could beryllium important ramifications for banks crossed nan country, CNN reported.

The effort to get Gruenberg to measurement down has been speared by Republicans. Democrats, however, haven’t endorsed nan move arsenic Vice Chair Travis Hill, a Republican appointee, would automatically go chair until a imperishable replacement is appointed. AP

The move would termination nan FDIC’s inaugural to activity pinch nan Federal Reserve and Office of nan Comptroller of nan Currency to walk immoderate benignant of regulations that beefs up slope superior requirements, according to Dennis Kelleher, president and CEO of Better Markets, a group that advocates for oversight of nan financial sector.

Kelleher besides told CNN that rule-making would travel to a “screeching halt” without Gruenberg astatine nan helm.

A spokesperson for nan FDIC insisted to nan outlet that Gruenberg “is already implementing nan recommendations successful nan report” and that “at his direction” nan agency is “working to place and name a translator show arsenic good arsenic an independent third-party master to support these efforts.”

The FDIC did not instantly respond to The Post’s petition for comment.

Late past year, 3 agencies — nan FDIC, Fed and Office of nan Comptroller of nan Currency — approved a preliminary measurement to finalize Basel III Endgame, a group of rules that would require America’s largest banks to group speech much capital, limiting nan magnitude of costs they person to lend to customers.

The groups are successful nan process of evaluating nan first connection aft Republicans connected nan FDIC committee voted against Basel III Endgame, and are poised to propose caller rules based connected nan comments they received, according to CNN.

Jaret Seiberg, a argumentation expert astatine TD Cowen, said successful a Tuesday statement obtained by CNN that this is why “Gruenberg’s departure would beryllium a affirmative for nan bigger banks.”

Seiberg, however, noted that he doesn’t deliberation Gruenberg will resign arsenic cardinal Democrats for illustration Sen. Elizabeth Warren aren’t calling for his resignation, and White House property caput Karine Jean-Pierre didn’t opportunity that Biden has immoderate doubts successful his expertise to lead nan FDIC.

This is apt because successful nan lawsuit of Gruenberg’s resignation, Vice Chair Travis Hill, a Republican appointee, would automatically go chair until a replacement is appointed by nan president and confirmed by nan Senate, CNN reported.

Hill voted against Basel III Endgame.