FDIC Chairman Under Fire Amid Allegations of Misconduct and Toxic Workplace Culture

Lawmakers demand answers and action as concerns over proposed Basel III capital rules also loom.

FDIC Chairman Martin Gruenberg faces scrutiny over allegations of sexual misconduct within the agency, with lawmakers demanding answers and further investigation.
Gruenberg admitted to a single internal investigation 15 years ago, but said it was subsequently dropped.
Lawmakers have expressed serious concerns about the proposed Basel III capital rules, fearing they could have harmful effects on the broader economy, particularly in lending.
The FDIC has launched an independent investigation into the allegations of a toxic workplace culture.
If Gruenberg does not resign, he is urged to prioritize turning the agency around, weeding out misconduct, and restoring a safe and respectful work environment.