FDIC chair faces calls to resign after reports of rampant sexual harassment at bank regulator
New York PostMAY 2024
Ranking Democrat Suggests Biden Fire FDIC Chair
Above: Martin Gruenberg, Chair of the Federal Deposit Insurance Corporation (FDIC) testifies before the Senate Banking, Housing, and Urban Affairs Committee on Capitol Hill on May 16, 2024 in Washington, DC. Image copyright: Kevin Dietsch/Staff/Getty Images News via Getty Images
The Spin
Republican narrative
Gruenberg should resign immediately and Democrats should prioritize doing the right thing over politics and joining Republicans in calling for him to step down. Democrats have called for numerous officials to be fired or to resign over similar improprieties, and Gruenberg's status as a Democrat shouldn't protect him.
Democratic narrative
In an ideal world, Gruenberg would be replaced, but political logistics make the move risky. Regardless of how quickly the Senate acts, it could be months to name his replacement. This could leave the FDIC in a weak position to promote key reforms during a time of banking uncertainty.
Metaculus Prediction
There's a 50% chance that at least 138 FDIC banks will fail in the time period from 2023 through 2030, according to the Metaculus prediction community.