Republican and Democratic senators on Thursday accused each other of playing partisan politics in response to reports about a toxic workplace culture at the Federal Deposit Insurance Corporation (FDIC).
Republican lawmakers across the board are calling for FDIC Chairman Martin Gruenberg (Democratic) to resign, but there is disagreement within the Democratic Party over the response, with some lawmakers calling on Gruenberg to reform the agency rather than resign. There are some too.
Sen. Tim Scott, R.S., ranking member of the Senate Banking Committee, said during the committee’s oversight hearing Thursday that the Biden administration is retaining the FDIC chair to continue advancing its regulatory agenda. he suggested.
South Carolina Republican lawmakers have criticized President Biden’s decision to fire U.S. Railroad Retirement Board (RRB) Inspector General Martin Dickman in March for creating a hostile work environment. I pointed out what I did.
“The bottom line is, there’s only one question: What’s the difference between you and the inspector general?” Scott said. “Is it politics? Is it the fact that it’s necessary and easy to vote for the Biden administration’s economic policy agenda? I think the answer is yes.”
If Gruenberg were to resign, he would be replaced by Republican FDIC Vice Chairman Travis Hill, he acknowledged Thursday in response to a question from Sen. Bill Hagerty (R-Tenn.).
“It’s really surprising that members of this committee would try to ignore this report and what it clearly calls for because of some Federal Reserve regulations,” Hagerty said. Stated. “Is there an exception to the technical regulations for the ‘Me Too’ movement?”
But Sen. Elizabeth Warren (D-Mass.) hit back at Republicans, accusing them of conducting a “purely political campaign” in calling for Gruenberg’s resignation.
“They want to replace you with Vice Chairman Travis Hill, who was the right-hand man of your Republican predecessor who exacerbated the agency’s cultural problems,” Warren said.
“Your resignation will do nothing to improve the toxic culture at the FDIC, but it will give Republicans a veto over banking policy,” she added.
Other Democrats, such as Rep. Maxine Waters (Calif.), ranking member of the House Financial Services Committee, have raised concerns and complaints about law firms that recently conducted FDIC reviews that arose under Republican leadership. The law firm has been accused of political bias for neglecting the law. It is included in the agency’s final report.
The Cleary Gottlieb Steen & Hamilton report released last week confirmed allegations first reported by the Wall Street Journal about a culture of sexual harassment, misconduct and retaliation at banking regulators.
Sen. LaFonza Butler (D-Calif.) also accused Republicans of “double standards” during Thursday’s hearing for not condemning the actions of former President Trump, who is now considered the likely Republican presidential nominee. did.
“I also hope that my colleagues on both sides of the aisle have a consistent commitment to holding perpetrators of sexual harassment accountable, whether they work for the FDIC or are attempting to occupy the Oval Office. I’m looking forward to it,’” Butler said.
“It was interesting and a little disconcerting to hear my colleagues mention the concept of double standards, but how they did not and will not condemn the actions of the former president. I have also experienced what I did not condemn in the future. He is not only in court today, but I realized that he has already been found responsible for the sexual assault,” she added. .
Trump has spent much of the last few weeks in a New York City courtroom, where he is on trial for falsifying business records to conceal hush money payments to porn star Stormy Daniels.
The former president was also found guilty last year of sexually abusing author E. Jean Carroll during a meeting in the 1990s.
“As the administrator of the FDIC, I can’t say that this behavior is disgusting or unacceptable, but because it’s deliberately ignored, it’s excusable as someone who actually wants to be the next president of the United States.” ” Butler continued. “What incredible hypocrisy.”
Sen. Steve Daines (R-Mont.) also suggested double standards on the part of Democrats and questioned their efforts to combat sexual harassment and discrimination.
“What’s become clear is that some of the same Senate Democrats who were willing to stake their political identities on the fight against sexual harassment and discrimination are sitting here today and, frankly, they’re not going to let that happen under your leadership.” “It’s turning a blind eye to the very same abuses that are happening at the FDIC,” he said.
“It’s clear that the president and his party want to ignore these damning findings out of political expediency,” Daines added.
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