Financial Services Committee Republicans Lead Effort to Hold Chair Gruenberg Accountable for Misconduct, Toxic Workplace Culture at the FDIC
Independent report makes clear institutional reforms, Gruenberg resignation needed
Washington,
May 14, 2024 -
Last week, the law firm Cleary Gottlieb released an independent, apolitical report confirming reports of widespread and entrenched misconduct at the Federal Deposit Insurance Corporation (FDIC). The report outlines a toxic workplace culture at the agency, as well as verbally abusive behavior by Chair Martin Gruenberg. Republicans on the House Financial Services Committee are leading the charge to hold Chair Gruenberg—who has led the FDIC for ten of the last thirteen years—to account for these long-standing problems by demanding he resign.
Read more from leaders on the House Financial Services Committee below:
“It’s time for Chair Gruenberg to step aside. The independent report released today details his inexcusable behavior and makes clear new leadership is needed at the FDIC,” said Chairman McHenry. “This report confirms the toxic workplace culture at the FDIC—which starts at the top—has led to entrenched and widespread misconduct at the agency. … As the House Financial Services Committee continues its own investigation, Republicans will ensure Chair Gruenberg and other senior leaders at the FDIC are held accountable.”
“Today’s independent report by Cleary Gottlieb makes clear that Chair Gruenberg is not the right person to lead a much-needed cultural overhaul at the FDIC,” said Subcommittee Chairman Huizenga. “Chairman Gruenberg should resign immediately to allow the healing process to begin. I urge all of my colleagues to join me in demanding the same.”
“It is clear that FDIC Chairman Gruenberg must resign to pave the way for necessary reforms to the FDIC’s longstanding and ongoing toxic workplace issues that threaten the safety of employees,” said Subcommittee Chairman Barr. “Having led the FDIC for ten of the past thirteen years, his prolonged tenure and failure to recognize his own role in these issues is a clear management failure. … His stubborn lack of self-awareness and mismanagement has contributed to a toxic work environment that includes harassment, discrimination, and mismanagement. In turn, the gross mismanagement has led to an agency that could not properly oversee the safety and soundness of U.S. financial institutions.”
“FDIC Chairman Marty Gruenberg has overstayed his welcome at the FDIC.” said Subcommittee Chairman Luetkemeyer. “… His failure to lead, disregard for managerial duties, and inability to operate as a responsible employer and regulator have reached a critical juncture with this damning report the FDIC commissioned to look into its workplace culture. The U.S. banking system needs regulators who prioritize the safety and security of our financial institutions, free from the misuse of power and a persistent lack of accountability for their actions. Marty Gruenberg fails to meet this standard, and I have no confidence in either his ability or moral authority to turn things around at an agency he has loitered about for nearly two decades. He needs to resign immediately.”
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