(This May 20 story hasactually been refiled to getridof duplication of paragraph 7)
By Pete Schroeder
WASHINGTON (Reuters) – U.S. Federal Deposit Insurance Corp Chair Martin Gruenberg stated on Monday he prepared to action down, lastly givingin to a months-long scandal over sexual harassment and other misbehavior at the leading bank regulator.
Gruenberg, whose five-year term ends in 2028, stated he would action down assoonas a follower is validated. The White House will quickly put forward a candidate to change him, deputy press secretary Sam Michel stated in a declaration.
The pending departure of Gruenberg, a Democrat and Wall Street critic who hadactually been a senior leader at the FDIC for almost 2 years, comes at a important time for the firm – simply a year after 3 significant banks stoppedworking and as lotsof lendinginstitutions continue to battle amidst raised Federal Reserve interest rates.
The FDIC is likewise working with other bank regulators on anumberof efforts to tightenup policies, consistingof a controversial strategy to increase huge bank capital requirements.
With Gruenberg staying on upuntil a replacement is revealed, Democrats can claim a ethical success while enabling the company to continue with its regulative program, stated Todd Baker, a senior fellow at Columbia University’s law and company schools.
“It’s a stalemate and it attains most of the objectives of the administration – that is, to maintain manage over the FDIC’s program,” he included.
Gruenberg had stuck to his task consideringthat November when a Wall Street Journal report exposed prevalent misbehavior at the FDIC, regardlessof protest from several congressional Republicans