Iowa Senator Joni Ernst is calling on the chairman of the Federal Deposit Insurance Corporation to immediately resign.
The agency protects depositors from losses if a bank or savings and loan fails. Ernst said an independent investigation released 43 days ago found the FDIC’s chairman failed to protect employees from a toxic workplace.
“At Chairman Gruenberg’s FDIC, employees stalked one another,” Ernst said during remarks on the Senate floor. “…They made gross, lewd, and downright sexist comments designed to belittle, intimidate, and sexualize their female coworkers.”
In May, the top Democrat on the Senate Banking Committee called on Gruenberg to resign and Guenberg announced a few hours later that he would step down after his successor is confirmed by the U.S. Senate. Ernst, a Republican from Red Oak, said Gruenberg has fostered a “raunchy ’90s frat house” atmosphere in the agency and he needs to go immediately.
“We all know why he’s refusing to just quit today,” Ernst said. “If and when the FDIC chairmanship becomes vacant, the Vice Chair, currently a Republican, assumes the chairmanship.”
President Biden has nominated a regulator on the Commodity Futures Trading Commission to take Gruenberg’s place at the FDIC. Ernst said she looks forward to reviewing Christy Goldsmith Romero’s credentials, but “a significant amount of time” will pass before the senate votes on the nomination.
“President Biden is letting a dirt bag run the FDIC for who knows how long,” Ernst said.
Democrats say if Gruenberg resigns before he’s replaced, there would be two Republicans and two Democrats left on the FDIC board and tie votes could delay some banking regulations from taking effect. The FDIC was formed during the Great Depression to restore trust in the American banking system. Over 5700 people currently work in the agency.