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Hearing On Oversight of FDIC’s Failed Leadership, Toxic Workplace Culture

Federal Deposit Insurance Corporation (FDIC) Chairman Martin Grunberg testifies before the Senate Committee on Banking, Housing and Urban Affairs on Capitol Hill in Washington, DC on May 16, 2024 (Photo by Kevin Dietsch/Getty Images)

Taylor Tinsley of OAN
Wednesday, June 12, 2024 6:07 PM

The House Financial Services Committee held a hearing on the toxic workplace culture reported by the Federal Deposit Insurance Corporation (FDIC) and the alleged abusive behavior of FDIC Chairman Martin Gruenberg.

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Grunberg has faced calls for his resignation following a scathing report that exposed a toxic work environment rife with sexual harassment and bullying under his watch.

The committee heard testimony Wednesday from witnesses who testified that they had primarily received complaints about Grunberg’s temper.

Republicans on the committee argued that employees who were reprimanded by Grunberg were too afraid to tell him about bad news happening in the financial system.

The report contains a total of 510 allegations, some of which were collected while Grunberg was vice chairman from 2005 to 2011.

“Employees reported experiences with Chairman Grunberg that included him becoming enraged,” said Abena Mainu, who helped prepare the report. “The information we received, and what we heard from those employees, suggested that this could have a chilling effect on communication with Chairman Grunberg.”

Gruenberg had previously said he was prepared to step down once his successor was confirmed by the Senate.

But Chairman Patrick McHenry, R.N., questioned what would prevent Gruenberg from resigning today.

“Based on Chairman Grunberg’s allegations, I have to believe that he overlooked this egregious conduct despite leading the agency for 10 of the last 13 years,” Rep. McHenry said.

McHenry said it’s clear that a cultural change at the FDIC will happen with or without Grunberg, and it’s time for Democrats and Republicans to unite and call for Grunberg’s immediate resignation.

But Democrats on the committee repeatedly compared their support for the FDIC chief to Republicans’ support for President Donald Trump.

The White House has indicated that President Biden is preparing to nominate Christy Goldsmith Romero to replace Gruenberg.

Goldsmith Romero has served as a Democratic commissioner on the Commodity Futures Trading Commission since 2022.

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