Barr, Huizenga Demand Gruenberg Recuse Himself from Independent Investigation, Produce Documents and Witnesses for Testimony

Cmte Financial Services (R)
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Barr, Huizenga Demand Gruenberg Recuse Himself from Independent Investigation, Produce Documents and Witnesses for Testimony
Letters follow Committee Republicans’ announcement of investigation into Chair’s alleged misconduct, toxic workplace at FDIC

Following the announcement of Committee Republicans’ investigation into allegations of misconduct at the Federal Deposit Insurance Corporation (FDIC), the Chairman of the Financial Institutions and Monetary Policy Subcommittee, Rep. Andy Barr (KY-06), and Chairman of the Oversight and Investigations Subcommittee, Rep. Bill Huizenga (MI-04), sent letters to FDIC Chair Martin Gruenberg demanding he recuse himself from any ongoing independent investigation into the aforementioned allegations and produce documents and witnesses for testimony in service of the Committee’s investigation.

“As you are aware, the Committee on Financial Services has opened an investigation into the FDIC’s toxic workplace. I write to ask that you recuse yourself from any oversight or control over any investigation that you may have initiated or organized with an “independent” outside entity. I further ask that: 1) the terms, conditions, work plan, and work parameters associated with any independent outside investigation of the FDIC’s toxic workplace initiated by the FDIC be provided to Congress; and 2) the full Board be responsible for overseeing the outside entity’s investigation.

“I am concerned that your ability to oversee a truly independent investigation that is in the best interest of the FDIC and the banking system is limited. Your conspiracy to engineer a coup against your predecessor, a first-generation immigrant woman, amplified and reinforced a culture of workplace hostility toward women. The hostility of those actions undertaken by you and fellow Democrat-appointed regulatory officials sent a clear signal throughout the FDIC that diversity, equity, and inclusion can and will be abandoned in favor of self-interest. Moreover, this posture sends the message that hostility toward women can and will be adopted, if that is what it takes to get ahead. This posture is at the heart of the recent WSJ articles depicting widespread toxic culture at the FDIC, and one that you continued to perpetuate in order to assume your current position.

“As the Financial Services Committee investigation proceeds, please allow FDIC staff to be open and transparent. Please, also, provide the Committee upon receipt of this letter with any documents that form a contractual relationship between the FDIC and any outside firm that you arranged to investigate the hostile workplace culture at the FDIC, including the terms set for the outside investigation.”

“Last week the Wall Street Journal published disturbing allegations regarding your behavior and the workplace culture at Federal Deposit Insurance Corporation’s (FDIC) under your leadership. The reports allege that the agency has maintained a culture that perpetuates sexual harassment, misogyny, and other acts of misconduct. These allegations are a serious departure from the agency’s mission. The reports also allege that members of your senior leadership team have exhibited discrimination and hostile conduct. I am concerned that the alleged, long-standing culture of inappropriate behavior originates from you and your leadership of the agency.

“In follow-up to your testimony before the Committee on Financial Services (Committee) your staff provided the Committee with a copy of the 2008 Report of Management Inquiry. The report makes clear that its findings are the result of contracted work to conduct an inquiry into allegations of misconduct. The existence of this report and the associated inquiry appears to conflict with the information you provided to the Senate Committee on Banking, Housing, and Urban Affairs during the nomination process. In response to a question about whether you were ever “the subject of a complaint or been investigated” for unprofessional conduct, you answered “None in my personal capacity.” Please explain why the 2008 Report of Management Inquiry is not reflected in your answers provided to the Senate during your confirmation process.

“Additionally, the Committee is requesting testimony from you and members of your staff who have information related to our investigation into the FDIC’s workplace culture. The Committee requests that the following individuals be made available as soon as possible, but no later than December 5, 2023, for a transcribed interview…”