FDIC Chairman Martin Gruenberg to resign on January 19

The chairman said he has already notified the White House of his decision to resign before the next presidential administration. Trump is now expected to nominate a new leader of the banking regulator.

By Misty Severi

Published: November 19, 2024 3:47pm

Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg on Tuesday announced that he would resign his post on January 19, the day before President-elect Donald Trump is sworn into office.

Gruenberg had been dragging his feet on resigning his post, stating in May that he would resign after a successor had been nominated and confirmed to fill his place. But President Joe Biden never nominated a replacement.

The chairman, who has been on the FDIC board since 2005, said he has already notified the White House of his decision to resign before the next presidential administration. Trump is now expected to nominate a new leader of the banking regulator.

“Earlier today I informed the President that I will retire as Chairman and Member of the Board of Directors of the FDIC effective January 19, 2025,” Gruenberg wrote in a message reported by Politico. “It has been the greatest honor of my career to serve at the FDIC. ... I have especially valued the privilege of working with the dedicated public servants who carry out the critically important mission of this agency.”

The resignation comes after months of pressure from House Republicans, who launched an investigation into allegations of sexual harassment and discrimination at the FDIC last year. The House investigation stemmed from a series of reports by the Wall Street Journal, and an outside investigation from the Cleary Gottlieb Steen & Hamilton law firm confirmed the allegations.

Gruenberg is expected to testify in front of the House Financial Services Committee on Wednesday, alongside other finance officials. Republicans on the panel already introduced a resolution that called for Gruenberg's immediate exit last week.

Republican Vice Chair Travis Hill is expected to become the FDIC's acting chairman upon his resignation, if Trump does not announce a different successor before then. Hill is also considered a contender for the permanent position.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.