Political exchange during FDIC congressional hearing intensifies, marked by opposing viewpoints.
In a dramatic turn of events, the Federal Deposit Insurance Corporation (FDIC) has been under scrutiny due to a damning report released by law firm Cleary Gottlieb last month. The report accused the regulator of failing to provide a safe workplace, with instances of sexual harassment, discrimination, and other misconduct.
Joon Kim and Abena Mainoo, partners at law firm Cleary Gottlieb, attended a recent House committee hearing to discuss these workplace issues within the FDIC. Rep. French Hill posed a question to Mainoo, asking if the FDIC was a place she would like to work. However, Kim did not express an opinion on whether FDIC Chair Martin Gruenberg should be removed from his position.
Despite calls for Gruenberg's removal, Republican Vice Chair Travis Hill has not been called to step down. As of late August 2025, there is no publicly available or credible information indicating an active or official call for Gruenberg's removal due to sexual harassment allegations within the FDIC.
The most recent confirmed information lists Travis Hill as the acting vice chairman and acting chairman of the FDIC board, with the chair position not currently held by Gruenberg according to a July 15, 2025, update of the FDIC board members.
There is no mention of Christy Goldsmith Romero's nomination as FDIC Chair in recent official or news sources. The search results focus mainly on unrelated FDIC governance and judiciary matters, including a court case that concerns the FDIC but not its chair.
The hearing turned into a political sparring match between Democrats and Republicans, with Rep. Patrick McHenry of North Carolina calling for Gruenberg's immediate resignation. Rep. Andy Barr, R-KY, accused Democrats of using Gruenberg's conditional resignation as a political maneuver, while Rep. Stephen Lynch, D-MA, criticized Republicans' support of Trump amid allegations related to sexual misconduct and recent felony convictions.
Despite the political turmoil, Gruenberg has announced he will resign once a successor is confirmed. The President is expected to nominate Christy Goldsmith Romero, a commissioner with the Commodity Futures Trading Commission, to lead the FDIC. Hsu, the acting comptroller of the currency, conditionally supports Gruenberg remaining in his position for now, provided he delivers on commitments and takes necessary actions.
Mainoo found it difficult to answer whether she would like to work at the FDIC due to concerns expressed by FDIC employees. Both parties emphasized the need for change at the agency but had different expectations on how to achieve it. Rep. Hill believes the transition at the FDIC should happen immediately, as the confirmation process may take a long time.
As new developments emerge, they would likely be covered by major financial regulatory news outlets or official FDIC announcements.
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