President Joe Biden has announced his intention to nominate Christy Goldsmith Romero to succeed Martin Gruenberg as the head of the Federal Deposit Insurance Corporation (FDIC). Gruenberg's resignation comes in the wake of allegations of workplace abuse that have tarnished his tenure.
Goldsmith Romero currently serves as a commissioner at the Commodity Futures Trading Commission, the regulatory body overseeing the nation's financial derivatives market.
Gruenberg's decision to step down from his position at the FDIC follows the release of an independent report conducted by law firm Cleary Gottlieb Steen & Hamilton. The report detailed numerous instances of misconduct, including stalking, harassment, homophobia, and other violations of employment regulations. Over 500 complaints from FDIC employees were reviewed as part of the investigation.
Among the complaints were accounts of a female employee who reported being stalked by a coworker and subjected to ongoing harassment despite raising concerns about his behavior. Additionally, a field office supervisor was accused of making derogatory remarks about gay men, referring to them as 'little girls.' Another troubling incident involved a female field examiner who received an unsolicited explicit image from a senior FDIC examiner.
The FDIC, established during the Great Depression, is a key regulator within the U.S. banking system. One of its primary functions is to administer the nation's deposit insurance program, which safeguards individuals' deposits up to $250,000 in the event of a bank failure.
