Martin Gruenberg, the chairman of the US Federal Deposit Insurance Corporation (FDIC), has announced his resignation. The 71-year-old has come under heavy fire in recent months. An external review has found extensive reports of sexual harassment and other misconduct at the top banking regulatory agency.

Pressure on US President Joe Biden

Gruenberg is now facing the consequences. On Monday, he announced that he would step down from his responsibilities as soon as a successor is confirmed. According to the report, commissioned from a law firm following revelations by the American newspaper «Wall Street Journal,» Gruenberg himself exhibited a rough demeanor with subordinates.

The chairman of the Banking Committee in the US Senate, Sherrod Brown, called for «fundamental changes» at the agency and urged US President Joe Biden to immediately find a replacement for the FDIC leadership.

Harsh Criticism of Swiss Rescue Plan

Gruenberg was especially known in this country for his criticism of the takeover of Credit Suisse (CS). In an interview with the «Financial Times,» he expressed his dissatisfaction with Switzerland and its handling of CS. The decision to merge CS with UBS and thus save it was «not a helpful» way to deal with a failing global bank, he said.

The decision not to do so was a missed opportunity .

No Fear of Liquidation?

American banking authorities would not shy away from a complete liquidation in a similar situation. «I would liquidate J.P. Morgan or another global systematically important bank,» he stated. «We think this is feasible.»

The FDIC wants to remind bank shareholders and managers that they cannot rely on government bailouts in emergencies, as they did during the 2008 financial crisis.