Lawmakers from both sides of the aisle on Capitol Hill are demanding the resignation of Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg in the wake of an independent review that exposed a toxic workplace culture at the agency.
The report released on Tuesday by law firm Cleary Gottlieb Steen & Hamilton details incidents of stalking harassment homophobia and other violations of employment regulations.
Honestly I'm not sure that the toxic and illegal workplace practices could be tied directly to the failure of both Signature and First Republic (both had FDIC as primary regulator). Although the misconduct report indicates there were a lot of problems at FDIC's large bank…
— Joshua (@shuamp) May 8, 2024
“The report makes clear new leadership is needed at the FDIC” said House Financial Services Committee Chair Rep. Patrick McHenry (R-NC), Rep. Bill Foster (D-IL) a member of the committee echoed the sentiment stating “Sweeping changes must be made to mend the toxic work environment that has run rampant for far too long and that starts with a change of leadership. It is time for Chair Gruenberg to resign.”
Sen. Tim Scott (R-SC) ranking member of the Senate Banking Committee also called for Gruenberg’s resignation. “It’s time for Chairman Gruenberg to resign so the FDIC can move forward with the leadership it deserves and desperately needs” he said.
FDIC, a government agency that protects bank customers from losing their deposits, fostered a toxic workplace rife with harassment and bullying that mostly targeted women or people from underrepresented groups, according to a new report. https://t.co/SK7aaI6FfS
— CBS Mornings (@CBSMornings) May 8, 2024
The independent review which was ordered by the FDIC’s board following a Wall Street Journal investigation last November found that the agency’s workplace culture fostered “hostile abusive unprofessional or inappropriate conduct.” It also questioned Gruenberg’s credibility to lead a cultural transformation given his own behavior as described in the report.
