FDIC chair apologizes to staff after probe finds toxic workplace culture

FDIC Chairman Martin Gruenberg said Tuesday that a law firm’s investigation confirmed a report alleging widespread sexual misconduct, lewd behavior and retaliatory administrative actions at the federal banking regulator. He then apologized to the staff.

“I would like to once again express my deepest regrets to those who have experienced sexual harassment or other misconduct at the FDIC,” Gruenberg wrote. “I would also like to apologize for my inadequacies.”

Grunberg said investigation The investigation, conducted by the law firm Cleary Gottlieb Steen & Hamilton, provided a “sober view” within the FDIC, and he said he accepted its findings and recommendations. The report is expected to be released Tuesday afternoon.

In a letter to staff, Gruenberg vowed to implement the report’s recommendations, saying “hundreds of colleagues have reported painful experiences of abuse and feelings of fear, anger and sadness.”

Gruenberg’s memo did not indicate that he intended to resign from the agency, where he has worked for nearly 20 years, despite calls for him to resign in December from Republicans on the Senate Banking Committee. .

The investigation into Cleary Gottlieb was commissioned by the FDIC following a bombshell investigation by the Wall Street Journal, which accused the agency of sexual harassment and misogyny. It was portrayed as a rampant, decadent boys’ club.

More than 500 FDIC officials reported instances of misconduct at the agency, as detailed in the legal investigation. Reuters reportedThis was reported by two sources familiar with the matter.

In addition to the misconduct accusations, Cleary Gottlieb also found numerous instances of bureaucratic retaliation against employees who reported misconduct to their superiors, according to Reuters.

The legal investigation’s reinforcement of the Journal’s report will put further pressure on the agency to make major changes, a point Gruenberg emphasized in a memo to employees.

“Bringing meaningful and lasting change to our workplace culture will not be easy,” he wrote.

It is also possible that there will be renewed calls for Gruenberg to resign.

“Given the importance of the FDIC’s role in maintaining the stability of the nation’s financial system and public confidence, we ask you to resign as Chairman and Director and replace the FDIC with a more reliable individual.” We ask you to address the workplace culture you contributed to,” Sen. Tim Scott (South Carolina), the top Republican on the Banking Committee, wrote in December.