The Chair of the FDIC is facing calls to resign after a scathing report. The implications for banks could be significant

Summary: Calls for the chair of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, to resign have intensified following the release of a report detailing sexual harassment, discrimination, and bullying at the agency. The report confirmed a problematic culture at the FDIC but did not solely blame Gruenberg. Lawmakers call for his resignation due to the potential impact on banks nationally. Democrats have refrained from joining the calls, likely to avoid deadlock at the FDIC if Gruenberg were to leave. Critics worry that Vice Chair Travis Hill, as Gruenberg’s replacement, may impede regulatory efforts.