Anti-Crypto FDIC Chairman Martin Grunberg to Step Down – ‘Best Day Ever’
US Federal Deposit Insurance Corporation (FDIC) Chairman Martin Grunberg will step down following a tough investigation into a toxic workplace culture at the bank regulator.
On May 20, Martin Grunberg announced that he was preparing to step down as chairman of the FDIC, which he had held since August 2005.
“Given recent events, I am prepared to step down once a successor is confirmed,” he said in an email to staff, before adding that he would continue to serve as FDIC chairman until then. Including changing the culture of the Federated workplace.
The FDIC is an independent United States government agency that provides insurance for depositors in American commercial and savings banks.
The announcement follows management's response to a May 7 third-party investigation into allegations of sexual harassment and other misconduct at the FDIC.
On May 15, Grunberg testified before Congress about widespread allegations of sexual harassment and mistreatment of subordinates. He has faced criticism from Republicans and Democrats alike, who have expressed anger, shock and disbelief at the deep issues at the FDC, according to Reuters.
Lawmakers have called for his resignation, and Senate Banking Chairman Sherrod Brown is among those calling for President Biden to replace Grunberg.
The White House has announced plans to nominate a new candidate for FDIC chairman.
But Sen. Elizabeth Warren Grunberg said she is confident he can make a difference at the agency.
The move was hailed by the crypto community as “the best day ever” with Castle Island Ventures partner Nick Carter.
Meanwhile, digital asset industry attorney John Deaton commented:
“It's a shame how Elizabeth Warren circled the wagons to get hold of one of her degraded dolls. I am very much looking forward to the debate.”
Related: Related: FDIC official urges better digital asset policy to protect US influence
Grunberg calls Operation Choke Point 2.0, a term coined by Nick Carter in 2023, believed to be a concerted effort led by the FDIC to prevent banks from holding crypto deposits or providing banking services to crypto companies.
In the year In an October 2022 speech, Grunberg compared crypto assets to risky financial innovations such as subprime mortgages and debt obligations that led to the 2008 financial crisis.
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