Martin Gruenberg, chairman of the US Federal Deposit Insurance Corporation (FDIC), will resign following a scathing investigation that exposed a toxic workplace culture at the banking regulator.
On May 20, Martin Gruenberg declared himself ready to leave his post as chairman of the FDIC, which he has led since August 2005.
“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” he said in an email to staff before adding: “Until then, I will continue to fulfill my responsibilities as Chairman of the FDIC. , including transforming the FDIC’s workplace culture.
The FDIC is an independent United States government agency that provides insurance to depositors of American commercial banks and savings banks.
This announcement follows an independent investigation released May 7 into allegations of sexual harassment and other interpersonal misconduct at the FDIC, as well as management’s response to that misconduct.
On May 15, Gruenberg testified before Congress regarding widespread allegations of sexual harassment and mistreatment of his subordinates. He faced criticism from Republicans and Democrats, who expressed anger, dismay and disbelief at the depth of the FDIC’s problems, according to Reuters.
Lawmakers have called for his resignation, and Senate Banking Chairman Sherrod Brown was also among those who called on President Biden to replace Gruenberg.
The White House has said it intends to nominate a new candidate to chair the FDIC.
However, Sen. Elizabeth Warren said she has confidence in Gruenberg’s ability to make changes within the agency.
The move was celebrated by the crypto community, with Castle Island Ventures partner Nic Carter calling it “the best day ever.”
Meanwhile, digital assets industry lawyer John Deaton commented:
“It is shameful how Elizabeth Warren circled the wagons to keep one of her disgraced puppets in place. I am so looking forward to participating in the debates.
Related: Related: FDIC Official Calls for Better Digital Assets Policy to Maintain U.S. Influence
Gruenberg is believed to have been instrumental in facilitating Operation Choke Point 2.0, a term coined by Nic Carter in 2023 referring to a coordinated effort led by the FDIC to discourage banks from holding crypto deposits or providing from banking services to crypto companies.
In a speech in October 2022, Gruenberg compared crypto assets to risky financial innovations such as subprime mortgages and collateralized debt securities that led to the 2008 financial crisis.
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News Source : cointelegraph.com
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