The top Democrat on the House Financial Services Committee said an independent investigation into sexual harassment and fraud at the Federal Deposit Insurance Corporation (FDIC) has disproportionately focused on the agency’s current Democratic leadership, and his Republican predecessor. He strongly criticized the third-party investigation, arguing that it was not enough for the government.
In a statement Thursday, Rep. Maxine Waters (D-Calif.) acknowledged the cultural deficiencies at the FDIC highlighted in a report by the law firm Cleary Gottlieb Steen & Hamilton, but the FDIC Commissioner President Martin Gruenberg effectively defended the move in the face of bipartisan pressure. he resigns.
“The Cleary report focuses ‘tone at the top’ solely on the Democratic chair, under whose leadership the agency receives the highest ratings from employees, and the performance of the past two Republican chairs. It’s completely ignored,” Waters said. Thursday’s statement.
Waters also called the report’s contents “alarming” and “confirms that the FDIC needs to change its policies and programs to improve workplace culture, especially in the area of anti-sexual harassment.” “
Mr. Waters’ support for Mr. Gruenberg puts him at odds with some of his colleagues on the House Financial Services Committee, particularly Rep. Bill Foster (D-Ill.), the top Democrat on the Financial Institutions subcommittee. ing.
Foster on Tuesday called for Gruenberg’s resignation, saying he was “appalled” and “deeply disturbed” by the extensive sexual harassment and discrimination described in the report.
A number of Republicans in the House and Senate have already called for Gruenberg, a 20-year veteran of the FDIC who has held multiple positions within the agency, to resign.
A culture of sexual harassment and intimidation has been a problem at the FDIC for years, and was documented as far back as 2014 in the FDIC’s 2020 report.
A study referenced in the report found that 9% of FDIC respondents experienced sexual harassment between 2014 and 2016, lower than the government-wide average of 14%.
The prevalence of sexual harassment is almost exactly in line with recent historical norms, as approximately 500 of the agency’s 5,280 full-time employees reported harassment to Cleary Gottlieb.
A 2020 inspector general report found that the FDIC did not have an acceptable sexual harassment prevention program, and the gap appears to have persisted in the years since.
Cleary Gottlieb did not immediately respond to a request for comment about Waters’ criticism of the company’s investigation.
Former FDIC Chairs Elena McWilliams and Sheila Baer, who led the agency when the 2020 Inspector General report was released, did not respond to requests for comment.
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