FDIC chair out after toxic work culture report

What happened

Federal Deposit Insurance Corporation Chair Martin Gruenberg will step down as soon as his successor is confirmed, Gruenberg and the White House said Monday. Senate Banking Committee Chair Sherrod Brown (D-Ohio) had called for new leadership at the FDIC hours earlier, saying he no longer believed Gruenberg could fix the bank regulator’s toxic work culture, detailed in an independent review released May 7.

The report on FDIC workplace problems, from the law firm Cleary Gottlieb, found a “patriarchal, insular and risk-averse culture” where employees suffered sexual harassment from supervisors and Gruenberg was seen as “someone who was angry and upset and who could not control his temper.”

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