FDIC needs ‘fresh start’ with new Chair who is not part of leadership, White House official says

By Thomson Reuters May 21, 2024 | 11:06 AM

WASHINGTON (Reuters) – The White House believes the U.S. Federal Deposit Insurance Corp needs a “fresh start” with a new Chair that has not been part of the leadership structure, a White House official said.

“Within the White House there is a belief that the FDIC needs a fresh start with a new chair that has not been part of the leadership structure because many of these issues have continued at the agency for a long period of time,” a White House official, who spoke on condition of anonymity told Reuters.

The agency’s Chair Martin Gruenberg said on Monday he planned to step down, finally succumbing to a months-long scandal over sexual harassment and other misconduct at the top bank regulator.

(Reporting by Nandita Bose in Washington, Editing by Franklin Paul)