Published on 9 May 2024 on The New Republic via Yahoo Finance
Why Biden Must Fire the Head of the FDIC
An independent investigation has now confirmed allegations raised last November by a Wall Street Journal report that the Federal Deposit Insurance Corporation—the government regulator that insures bank deposits—is (as the Journal put it) “a toxic work environment” and “sexualized boys’ club” that “enabled and failed to punish bad behavior.” The misbehavior predated by at least 10 years the current chairmanship of Martin Gruenberg, who took the reins in January 2023. But it continued under Gruenberg, who also has been on the FDIC’s board since 2005 and, from November 2012 to mid-2018, served a previous term as chairman. And yet, at a hearing of the House Financial Services committee in November, Gruenberg denied he was previously aware, even “as a general matter,” of the allegations in the Journal report. That’s reason enough for President Joe Biden to fire him. He probably should have done so before Thanksgiving.
The Journal investigation, by Rebecca Ballhaus, was devastating. Here’s the lede: