Senate Banking Committee Chair calls for ‘new leadership' at the FDIC following scathing report

Sen. Sherrod Brown, a Democrat who heads the Senate Banking Committee, is calling for a leadership overhaul at the Federal Deposit Insurance Corporation following a report released earlier this month that detailed pervasive sexual harassment, discrimination, and bullying at the agency. Brown stopped short of explicitly calling for FDIC Chair Martin Gruenberg to resign. Rather, he said in a statement that there must be fundamental changes at the FDIC. Brown’s comments come after he chaired a hearing in which Gruenberg testified last week and received further outreach from FDIC employees. Most Democrats haven’t called on Gruenberg to be replaced. That’s likely because if Gruenberg were to vacate his position, Vice Chair Travis Hill, a Republican appointee, would automatically become chair until a replacement is appointed by the president and confirmed by the Senate. Additionally, if Gruenberg is ousted, the agency would be deadlocked with one other Republican and two Democratic members on the FDIC’s board of directors until a new chair is confirmed. The FDIC is responsible for ensuring the safety and soundness of banks across the country.