FDIC chair’s resignation threatens Biden banking agenda
05/22/24 6:00 AM ET
The Biden administration’s banking regulations hang in the balance as the chair of the Federal Deposit Insurance Corp. (FDIC) prepares to step down in the face of reports documenting a toxic workplace culture at the agency.
FDIC Chair Martin Gruenberg is central to getting several key proposals, including the controversial Basel III Endgame regulations, across the finish line.
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The FDIC chair was grilled by lawmakers on both sides of the aisle during two oversight hearings last week, although most Democrats opted not to call on Gruenberg to step down.
The final straw appears to have come from Senate Banking Chair Sherrod Brown (D-Ohio), who shifted his position Monday and ultimately called on Biden to replace Gruenberg.
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“If President Biden and Democrats were really serious about supporting employees and fixing the FDIC’s toxic work culture, they’d ask Chairman Gruenberg to step down immediately,” Sen. Tim Scott (R-S.C.), ranking member of the Senate Banking Committee, said in a statement.
“This draw-it-out strategy makes it clear that this administration is prioritizing their political agenda over protecting workers,” added Scott, a top contender to be former President Trump’s running mate in the upcoming election.
House Financial Services Chair Patrick McHenry (R-N.C.) similarly suggested that Gruenberg is “putting Democrats’ politicized regulatory agenda ahead of the well-being of the FDIC and the stability of our financial system.”
https://thehill.com/business/4677755-fdic-chairs-resignation-threatens-biden-banking-agenda/