Federal Deposit Insurance Corporation (FDIC) Chairman Martin J. Gruenberg today issued the following statement:
It has been my honor to serve at the FDIC as Chairman, Vice Chairman, and Director since August of 2005. Throughout that time I have faithfully carried out the critically important mission of the FDIC to maintain public confidence and stability in the banking system. In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed. Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.
On the passage of the US Basel III Endgame proposal, we wrote in February 2024 that “Even at the rule making organizations themselves, when the initial proposal was passed, there was sufficient concern amongst the governing bodies that it was not certain that a final rule would be approved. At the FDIC, dissent was strong enough that the vice chairman made clear that he was strongly not in favor. If there are senior leadership changes at the FDIC as a result of reputational damage that occurred in 2023, that alone could be enough to reset the current US Basel III finalization process.”
This is now happening. It is not known how the timing will line up of Chairman Gruenberg’s departure and a revised Basel III Endgame proposal being issued, commented on then voted into approval. But the pieces are moving into place.