Senate Banking Committee Chair calls for ‘new leadership’ at the FDIC following scathing report
S en. Sherrod Brown, a Democrat who heads the Senate Banking Committee, is calling for a leadership overhaul at the Federal Deposit Insurance Corporation following a scathing 234-page 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, who was appointed by President Joe Biden, to resign. Rather, he said in a statement Monday morning, “there must be fundamental changes at the FDIC.”
“Those changes begin with new leadership, who must fix the agency’s toxic culture and put the women and men who work there — and their mission — first,” Brown said. “That’s why I’m calling on the President to immediately nominate a new Chair who can lead the FDIC at this challenging time and for the Senate to act on that nomination without delay.”
Brown’s comments come after he chaired a hearing in which Gruenberg testified last week and received “further outreach from FDIC employees.”
Succession planning
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. Ultimately, if President Joe Biden heeds Brown’s call, there’s no guarantee that his new pick would be confirmed by January, when a new president could be inaugurated.
The White House did not immediately respond to CNN’s request for a comment.
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. That would likely stop significant and controversial banking regulations, such as ramped-up capital requirements, from taking effect.
The FDIC is responsible for ensuring the safety and soundness of banks across the country. It is financed by banks that contribute to its deposit insurance fund.
Jaret Seiberg, an analyst at TD Cowen, said it’s significant that Brown didn’t outright call for Gruenberg to resign. “This suggests to us that he would remain until a replacement is confirmed. That should ensure a Democratic majority that could adopt new rules,” he said in a note on Monday.
Brown himself is also in a sticky position as he faces one of the toughest reelection bids in his state of Ohio that could determine which party controls the Senate. That’s partly why Seiberg believes Brown is attempting to appear as though he does not support Gruenberg “but he is not disrupting efforts to finalize bank safety and soundness rules.”
Shortly after Brown released his statement, Sheila Bair, who served as chair of the FDIC from 2006 to 2011, called on Gruenberg to resign.
“I have known and worked with Chairman Gruenberg for years. But there is a desperate need for change at the FDIC,” Bair, a Republican appointee, said in a post on X. “For his own sake and everyone at the FDIC, he should announce his intention to resign effective with the appointment and confirmation of a new Chair.”
Gruenberg commits to improving his own temperament
Gruenberg was grilled by lawmakers last week in back-to-back hearings before the House and the Senate that were scheduled prior to the report’s release. During the hearings, where Gruenberg testified alongside other top financial regulators, he told lawmakers he takes “full responsibility” for the findings of the report.
“I also acknowledge my own failures as Chairman, both in failing to recognize how my temperament in meetings impacted others and for not having identified deeper cultural issues at the FDIC sooner,” he said. Gruenberg did not immediately respond a request for comment, while the FDIC declined to comment.
Gruenberg also agreed to take anger management courses given the report undertaken by the law firm Cleary Gottlieb Steen & Hamilton and commissioned by the FDIC documented several instances where he lashed out at subordinates “particularly when being delivered bad news or conveyed views with which he disagrees.” That has caused staffers to delay delivering news they fear would upset him. Gruenberg’s temperament “may hinder his ability to establish trust and confidence in leading meaningful culture change,” the report added.
The report, however, did not find that Gruenberg alone was responsible for the issues described in depth, based on interviews with over 500 employees. But the report said, “We do recognize that, as a number of FDIC employees put it in talking about Chairman Gruenberg, culture ‘starts at the top.’”
This story has been updated with additional details and context.
For more CNN news and newsletters create an account at CNN.com
IMAGES
COMMENTS
Committee Assignments of the 118th Congress. Below are all current senators and the committees on which they serve. Baldwin, Tammy (D-WI) Committee on Appropriations. Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. Subcommittee on Defense. Subcommittee on Energy and Water Development.
Committee System; Idea of the Senate; Parties & Leadership; Traditions & Symbols; Historic Buildings & Spaces. The Capitol; Senate Chamber; Historic Rooms; Senate Office Buildings; Congressional Meeting Places; Past Senate Chambers; Oral History Project; Historical Highlights. 1787-1800; 1801-1850; 1851-1877; 1878-1920; 1921-1940; 1941-1963 ...
Committee classes. Senate committees are divided, according to relative importance, into three categories: Class A, Class B, and Class C. In general, individual Senators are limited to service on two Class A committees and one Class B committee. Assignment to Class C committees is made without reference to a member's service on any other panels.
Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) Congressional-Executive Commission on China. Tom Lantos Human Rights Commission. House Democracy Partnership. Congressional Oversight Commission. Congress.gov covers the activities of the standing committees of the House and Senate, which provide legislative, oversight ...
u.s. government publishing office washington : 1 51-749 2023 s. pub. 118-3 the senate of the united states committee and subcommittee assignments for the one hundred eighteenth congress
The rules of the Senate divide its standing and other committees into categories for purposes of assigning all Senators to committees. In particular, Rule XXV, paragraphs 2 and 3 establish the categories of committees, popularly called the "A," "B," and "C" committees. The "A" and "B" categories, are as follows:2.
The Committee on Armed Services is a committee of the United States Senate empowered with legislative oversight of the nation's military, including the Department of Defense, military research and development, nuclear energy (as pertaining to national security), benefits for members of the military, the Selective Service System and other matters related to defense policy.
committee assignments. In the 118th Congress (2022-2023), Senator Heinrich serves on the following committees: ... U.S Senate Committee On Energy and natural resources. ... The Select Committee on Intelligence is dedicated to overseeing the United States' intelligence community. This responsibility includes performing an annual review of the ...
Committee Assignments. ... He is Chair of the Senate Judiciary Committee. Judiciary. Senator Durbin is currently the Chair of the Senate Judiciary Committee, where he has served as a member for more than 20 years. ... Congress. The Committee's work centers on helping to establish, guide, and examine agricultural policies in the United States ...
The Finance Committee was the Senate standing committee most responsible for veterans programs from 1917 to 1946. After World War II, the Finance Committee handled the Servicemen's Readjustment Act of 1944, the "GI Bill of Rights," which extended to servicemen and their families, a number of benefits including unemployment assistance ...
The Senate Foreign Relations Committee was established in 1816 and has been instrumental indeveloping and influencing United States foreign policy. The committee has considered, debated,and reported important treaties and legislation over the years, and it also holds jurisdiction overall diplomatic nominations. Through these powers, the ...
The Committee was established in 1816 as one of the original ten standing Senate committees. Throughout its history, it has been instrumental in developing and influencing United States foreign policy, at different times supporting and opposing the policies of presidents and Secretaries of State.
committee assignments. Senate Armed Services Committee. The United States Senate Committee on Armed Services (SASC) is a committee of the United States Senate empowered with legislative oversight of the nation's military, including the Department of Defense, military research and development, nuclear energy, benefits for members of the military ...
The U.S. Senate Committee on Appropriations is a standing committee of the U.S. Senate. It has jurisdiction over all discretionary spending legislation in the Senate. The U.S. Constitution defines its role, requiring "appropriations made by law" prior to the expenditure of any money from the Treasury. Sen.
Legislation. Committee Assignments. Tweet. Print. Committee on Energy and Natural Resources - Ranking Member. Ex officio member of all subcommittees. Committee on Foreign Relations. Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy and Environmental Policy - Ranking Member.
Committee Assignments U.S. Senate Committee on The JudiciaryU.S. Senate Committee on Banking, Housing & Urban AffairsU.S. Senate Committee on Homeland Security & Governmental AffairsU.S. Senate Committee on Rules & Administration
WASHINGTON - Today, the U.S. Senate Judiciary Committee advanced three pieces of legislation to support law enforcement. The legislation was advanced in conjunction with National Police Week, which Chair Durbin and Ranking Member Graham introduced a resolution to recognize earlier this week. Since Durbin became Chair, the Committee has now reported fourteen bills unanimously during National ...
Committee System; Idea of the Senate; Parties & Leadership; Traditions & Symbols; Historic Buildings & Spaces. The Capitol; Senate Chamber; Historic Rooms; Senate Office Buildings; Congressional Meeting Places; Past Senate Chambers; Oral History Project; Historical Highlights. 1787-1800; 1801-1850; 1851-1877; 1878-1920; 1921-1940; 1941-1963 ...
In the United States today, 91 million Americans do not have any dental insurance. More than 40% of children in America have tooth decay by the time they reach kindergarten, and about half of our nation's seniors have no dental insurance. ... Senate Committee on Health, Education, Labor and Pensions 428 Senate Dirksen Office Building ...
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 scathing 234-page report ...
[WASHINGTON, DC] - Today U.S. Senator Richard Blumenthal (D-CT) led a group of fourteen members of the Senate in sending a letter to the leadership of the Senate Appropriations Subcommittee on Defense urging them to preserve the two-per-year procurement cadence of Virginia Class submarines to maintain undersea supremacy and prevent destabilizing the industrial base.
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 scathing 234-page report ...
Washington, D.C. - Senate Finance Committee Chair Ron Wyden, D-Ore., and Ranking Member Mike Crapo, R-Idaho, today released a white paper outlining policy concepts related to reforming the way physicians are paid by Medicare and meeting the needs of those with chronic illness. "The way Medicare pays doctors for their work has not kept up ...
When confirmed, Mr. Mangi will be first Muslim American to serve as a federal circuit court judge. Key excerpts: "When the Senate Judiciary Committee met for a hearing on two nominees to the federal bench, on the morning of December 13th, only one of them was considered controversial. Nicole Berner, a lawyer in her late fifties, had served as ...