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The chairman of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, has announced his resignation on Monday. This comes in the midst of a scandal involving sexual harassment and other misconduct at the highest level of the bank regulator.

FDIC Chairman Martin Gruenberg Resigns

According to FT, Gruenberg has announced his intention to step down from his duties once a suitable replacement has been approved.

A prominent Democrat has demanded the replacement of Martin Gruenberg following the results of an external review that uncovered numerous instances of employee mistreatment and sexual harassment.

Senate Banking Committee Chairman Sherrod Brown emphasized the need for significant reforms at the agency. He urged Joe Biden to promptly nominate a replacement and called for swift action from the Senate. Brown's recent statement has intensified the pressure on the FDIC chair, as he becomes the highest-ranking Democrat to advocate for Gruenberg's replacement.

FDIC Toxic Workplace, Sexual Harassment Incidents

Last Tuesday's report highlighted numerous instances of stalking, harassment, homophobia, and other breaches of employment regulations. These findings were based on over 500 complaints filed by employees.

Several incidents were reported, including a case where a woman claimed to have been followed and harassed by a colleague, despite her previous complaints. Another incident involved a field office supervisor making derogatory remarks about gay men.

Additionally, a female field examiner reported receiving an inappropriate image from a senior examiner at the FDIC.

According to more than 100 current and former employees who were interviewed, it was reported that around 20 women had resigned because of a purported culture of 'sexual harassment and misogyny.'

Allegations reported to the WSJ, covering a period of more than ten years, involve a male supervisor in San Francisco inviting employees to a strip club and a supervisor in Denver engaging in a sexual relationship with an employee and sharing details with others.

According to reports, the individuals involved in the allegations are said to still hold positions within the FDIC, despite facing legal actions, union grievances, and complaints regarding their alleged misconduct.

The FDIC allegedly failed to ensure a safe working environment free from sexual harassment, discrimination, and other forms of interpersonal misconduct. The reports also highlighted the presence of a culture that was patriarchal, insular, and risk-averse within the agency, as per Daily Mail.