Republicans are calling for the resignation of FDIC Chair Martin Gruenberg after a report revealed a workplace culture at the agency rife with sexual harassment, discrimination, and other misconduct. The report, conducted by law firm Cleary Gottlieb Steen & Hamilton, detailed instances of discrimination, harassment, and inappropriate behavior experienced by over 500 individuals at the FDIC. The report also highlighted a toxic work environment where senior executives engaged in inappropriate behavior with little consequence. Chairman Gruenberg expressed regret over the findings and acknowledged the need for significant changes at the agency. However, House Financial Services Committee Chairman Patrick McHenry has demanded Gruenberg’s resignation, stating that the report’s revelations necessitate new leadership at the FDIC.
The article detailed instances of inappropriate conduct that went largely unpunished, prompting calls for accountability within the organization.
Following the publication of the investigative report, FDIC Chair Martin Gruenberg expressed shock at the allegations and resisted calls for his resignation.
Subsequent reports by the Wall Street Journal revealed Mr. Gruenberg’s reputation for bullying and aggressive behavior, including a formal investigation into an incident involving a female employee.
During a Senate hearing, Mr. Gruenberg acknowledged the troubling findings and pledged to conduct a thorough review of the workplace environment.
Pressure mounted on Mr. Gruenberg to step down as Republican senators demanded accountability for the workplace misconduct allegations.
The Wall Street Journal reports followed earlier findings by the FDIC’s inspector general, which highlighted the need for reforms to address sexual harassment complaints and improve the organizational culture.
Mr. Gruenberg, who has served on the FDIC Board of Directors since 2005, faced scrutiny over his leadership as calls for his resignation grew louder.
In the event of Mr. Gruenberg’s departure, FDIC Vice Chair Travis Hill would assume leadership, potentially leading to a shift in the board’s composition.
