US FDIC chair to resign as uncertainty hangs over proposed banking rules

Martin Gruenberg, chairman of the US Federal Deposit Insurance Commission, on Monday announced his intention to resign after a damning report on the agency's toxic workplace.

The news leaves uncertainty over major proposed capital requirements for the country's largest private banks.

“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” Mr Gruenberg said.

“Until that time, I will continue to fulfil my responsibilities as chairman of the FDIC, including the transformation of the FDIC’s workplace culture.”

The White House said President Joe Biden would soon put forth a nomination for Mr Gruenberg's successor.

The banking official faced calls to resign from Republicans during two hearings on Capitol Hill last week over an independent report that found the FDIC was rife with sexual harassment, discrimination and mismanagement.

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The investigation was launched after The Wall Street Journal reported the FDIC had a culture of sexual harassment and discrimination. More than 500 people called into the investigators' Hotline.

The report also found Mr Gruenberg had a reputation for losing his temper and “interacting with staff in a demeaning and inappropriate manner”.

During his testimony last week, he apologised for his conduct and insisted he was best suited to lead the changes at the FDIC.

Although he initially survived last week's hearings, his position became untenable after Senate banking committee chairman Sherrod Brown, a Democrat, called on Mr Biden to replace him.

“After chairing last week’s hearing, reviewing the independent report and receiving further outreach from FDIC employees to the banking and housing committee, I am left with one conclusion: there must be fundamental changes at the FDIC,” Mr Brown said in a statement on Monday morning.

“Those changes begin with new leadership, who must fix the agency’s toxic culture and put the women and men who work there – and their mission – first.”

By opting to remain as FDIC chair until a successor is chosen, Mr Gruenberg avoids having leadership split evenly between Democrats and Republicans.

Had he immediately stepped down, the split leadership could have significantly stalled major banking regulations.

Chief among them are the proposed capital banking requirements, for which the FDIC and Federal Reserve pushed after the collapse of Silicon Valley Bank last year.

The rules, part of the Basel III endgame, would require the largest banks to increase their capital by about 19 per cent.

US bank regulators proposed new capital requirements for large banks after the 2023 collapse of Silicon Valley Bank. Reuters

But those proposed requirements were widely panned by big banks and Republicans for possibly doing more harm to small businesses.

And more than 97 per cent of the 350 letters received during the comment period opposed the new rules outright.

Facing such opposition, Fed officials have indicated a willingness to adjust the rules.

Fed chairman Jerome Powell, who voiced scepticism but ultimately voted in favour of the capital banking requirements last year, has said he expects “broad and material” changes to Basel III.

The Fed and other federal regulators are now considering a plan that would significantly lessen the capital increase under the proposed rule, The Wall Street Journal reported.

The Fed vice chairman for supervision, Michael Barr, repeated Mr Powell's “broad and material” statement in Florida on Monday, saying the Basel endgame would finish the work of responding to the 2008 global financial crisis.

Mr Gruenberg joined the FDIC's board of directors in 2005.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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1.	United States
2.	China
3.	UAE
4.	Japan
5	Norway
6.	Canada
7.	Singapore
8.	Australia
9.	Saudi Arabia
10.	South Korea

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The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

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While you're here

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Sole survivors

Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.

Farasan Boat: 128km Away from Anchorage

Director: Mowaffaq Alobaid

Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani

Rating: 4/5

SPECS

Nissan 370z Nismo

Engine: 3.7-litre V6

Transmission: seven-speed automatic

Power: 363hp

Torque: 560Nm

Price: Dh184,500

Moving%20Out%202

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How do Sim card scams work?

Sim swap frauds are a form of identity theft.

They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.

They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.

The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Results

5.30pm: Maiden (TB) Dh82,500 (Turf) 1,400m; Winner: Mcmanaman, Sam Hitchcock (jockey), Doug Watson (trainer)

6.05pm: Handicap (TB) Dh87,500 (T) 1,400m; Winner: Bawaasil, Sam Hitchcott, Doug Watson

6.40pm: Handicap (TB) Dh105,000 (Dirt) 1,400m; Winner: Bochart, Fabrice Veron, Satish Seemar

7.15pm: Handicap (TB) Dh105,000 (T) 1,200m; Winner: Mutaraffa, Antonio Fresu, Musabah Al Muhairi

7.50pm: Longines Stakes – Conditions (TB) Dh120,00 (D) 1,900m; Winner: Rare Ninja, Royston Ffrench, Salem bin Ghadayer

8.25pm: Zabeel Trophy – Rated Conditions (TB) Dh120,000 (T) 1,600m; Winner: Alfareeq, Antonio Fresu, Musabah Al Muhairi

9pm: Handicap (TB) Dh105,000 (T) 2,410m; Winner: Good Tidings, Antonio Fresu, Musabah Al Muhairi

9.35pm: Handicap (TB) Dh92,500 (T) 2,000m; Winner: Zorion, Abdul Aziz Al Balushi, Helal Al Alawi

If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

Day 5, Abu Dhabi Test: At a glance

Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.

Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.

The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.

BRAZIL%20SQUAD

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Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills

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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.