A group of Republican members of the Senate Banking
Committee is calling for Federal Deposit Insurance Corp. (FDIC) Chair Martin
Gruenberg to resign, citing reported allegations of harassment and
inappropriate conduct within the agency, contributing to a toxic workplace
culture.
Ranking Member Tim Scott (R-S.C.) is leading the initiative
to relieve Gruenberg of his duties as chair and as a board member. He is joined
by Sens. Thom Tillis (R-N.C.), Cynthia Lummis (R-Wyo.), Kevin Cramer (R-N.D.),
and Steve Daines (R-Mont.) in endorsing a letter urging Gruenberg to step down.
“[A]ccording to these reports, both you and your top
deputies ‘have been involved in decisions over high-level examples of alleged
sexism, harassment, and racial discrimination in which the agency didn’t take a
hard line with individuals accused of misconduct,’ allowing the culture of
harassment and discrimination to persist and flourish,” the senators wrote. “As
a leader, you bear an ethical and professional responsibility to those you
serve to ensure a safe and respectful workplace. Accordingly, we are disturbed
to learn that, while leading the agency, you reportedly personally ‘built a
reputation for bullying and for having an explosive temper,’ culminating in at
least one investigation against you after you angrily berated a female FDIC
employee while you were vice chairman.”
Gruenberg has served on the FDIC Board since August 2005 and
as chair or acting chair multiple times. His current stint as chair began on
Jan. 5 upon his confirmation by the Senate. He previously served as chair from
November 2012 to mid-2018.
In April 2022, Scott and then-Ranking Member Pat Toomey
(R-Pa.) wrote to Gruenberg, who was acting chair at the time, requesting
he address allegations of racial discrimination and fears of retaliation at the
FDIC during his previous tenure as chair. On Sept. 17, 2018, a group of African
American FDIC employees wrote to former FDIC Chair Jelena McWilliams to express
concerns about the agency’s culture over the prior 14 years, including details
of how the agency functioned before McWilliams implemented changes intended to
prevent a reoccurrence the types of discrimination alleged under Gruenberg’s
previous chairmanship.
“The culture of an organization is set from the top. As
such, we have significant concerns with your ability to continue leading the
FDIC as it seeks to clean up its public image and provide much-needed changes
to its workplace culture to return the FDIC to working order,” the senators
continued. “Given the importance of the role of the FDIC in maintaining
stability and public confidence in the nation's financial system, we call on
you to step down as chairman and board member and allow someone with more credibility
to address the hostile workplace culture at the FDIC to which you have
contributed.”
The call for Gruenberg’s resignation came roughly two weeks
following the FDIC’s announcement it had commissioned an independent
inquiry into employee complaints of harassment and other forms of
mistreatment, as well as the formation of a special committee to oversee the
investigation.
The letter also requests Gruenberg to tell FDIC employees they
may confidentially contact Ranking Member Scott’s committee staff if they wish
to disclose information regarding waste, fraud or abuse within the agency.