FDIC Chair Martin Gruenberg will resign following a scathing investigation that detailed a toxic workplace

Martin Gruenberg, head of the Federal Deposit Insurance Corporation, will step down following a scathing independent investigation detailing pervasive sexual harassment, discrimination and bullying at the agency charged with regulating the banking sector.

Martin Gruenberg, head of the Federal Deposit Insurance Corporation, will step down following a scathing independent investigation detailing pervasive sexual harassment, discrimination and bullying at the agency charged with regulating the banking sector. “In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Gruenberg said in a statement on Monday. “Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.” By waiting to resign until a successor is named, that prevents a situation where Vice Chair Travis Hill, a Republican appointee, would have automatically become chair, leaving the agency deadlocked with one other Republican and two Democratic members on the FDIC’s board of directors. That would have likely stalled significant and controversial banking regulations, such as ramped-up capital requirements, from taking effect. Gruenberg’s announcement of his intent to resign comes hours after Sen. Sherrod Brown, a top Democrat who leads the Senate Banking Committee, called for “new leadership” at the FDIC. This is a developing story and will be updated.