FDIC head Gruenberg to resign after losing support of key Democrat over agency scandal

Federal Deposit Insurance Corporation Chairman Martin Gruenberg said Monday he plans to resign, after nearly a decade at the helm, after a key Democrat criticized him in the wake of a scathing report on sexual harassment at the agency.

Gruenberg made the announcement on Monday following blistering hearings before the House and Senate last week at which Republican lawmakers lashed Gruenberg’s leadership at the FDIC and called on him to step aside. The announcement also comes the same day that Sen. Sherrod Brown (D-OH), the chairman of the Senate Banking Committee, broke with his Democratic colleagues and called for Gruenberg’s resignation.

Gruenberg wrote to FDIC staff on Monday and told them that he plans to step down from the role but would remain on until he has a replacement.

“It has been my honor to serve at the FDIC as Chairman, Vice Chairman, and Director since August of 2005,” Gruenberg wrote. “Throughout that time I have faithfully carried out the critically important mission of the FDIC to maintain public confidence and stability in the banking system. In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed.”