First House Democrat calls on FDIC chair to resign after sexual harassment report
Rep. Bill Foster (D-Ill.) called on FDIC Chair Martin Gruenberg to resign on Tuesday after a law firm's investigation confirmed a report of rampant sexual misconduct, lewd behavior and retaliatory administrative practices at the federal banking regulator.
Foster became the first House Democrat to call for Gruenberg’s resignation, joining some fellow Republicans, including the chairman of the House Financial Services Committee, Rep. Patrick McHenry (R-N.C.), and members of the Senate Banking Committee, who in December similarly called for Gruenberg to step down.
“I am appalled and deeply disturbed by the details of widespread sexual harassment and discrimination at the FDIC outlined in the report released today, and I commend the brave individuals who came forward to shed light on these abuses,” Foster wrote on X.
“Sweeping changes must be made to mend the toxic work environment that has run rampant for far too long, and that starts with a change of leadership," he continued, "It is time for Chair Gruenberg to resign."
The investigation, undertaken by law firm Cleary Gottlieb Steen & Hamilton, was commissioned by the FDIC following a Wall Street Journal investigation, which painted a picture of the agency as a degenerate boys’ club rife with cases of sexual harassment and misogynistic behavior toward women.
The law firm's investigation described the culture as “patriarchal, insular, and risk-averse,” and revealed more than 500 cases of individuals who experienced workplace misconduct.
“We have completed our review, and find that, for far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct,” the executive summary of the report, published on Tuesday, read.
The report found that the toxic culture “has contributed to the conditions that allowed for this workplace misconduct to occur and persist, and that a widespread fear of retaliation, as well as a lack of clarity and credibility around internal reporting channels, has led to an underreporting of workplace misconduct over the years.”
The report did not lay blame directly on Gruenberg for the sexual harassment, but it revealed a staff that were often fearful of the chair “losing his temper and interacting with staff in a demeaning and inappropriate manger.” It also said management’s responses to the allegations of misconduct “have been insufficient and ineffective.”
“While we do not find Chairman Gruenberg’s conduct to be a root cause of the sexual harassment and discrimination in the agency or the long-standing workplace culture issues identified in our review, we do recognize that, as a number of FDIC employees put it in talking about Chairman Gruenberg, culture ‘starts at the top,’” the report read.
The report called for a “cultural transformation,” which it indicated might be difficult for Gruenberg, since he has led the organization for ten of the last 13 years and worked at the agency for almost 20 years. He has also developed a reputation for getting angry and losing his temper, the report said.
“These attributes may hinder his ability to establish trust and confidence in leading meaningful culture change, and so too may his apparent inability or unwillingness to recognize how others experience certain difficult interactions with him,” the report read.
“For these challenges to be overcome, there must at least be a genuine and sustained commitment to lead a culture change, accompanied by a recognition and acknowledgement that such change is necessary because of failings of the past, including his own,” the report continued.
Gruenberg, ahead of the report’s release, apologized to the staff but did not indicate any plans to resign. He said the investigation presented a “sobering look” inside the FDIC and that he accepted its findings and recommendations.
“To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry I am,” Gruenberg wrote to staff. “I also want to apologize for any shortcomings on my part.”
“Hundreds of our colleagues reported painful experiences of mistreatment and feelings of fear, anger, and sadness,” Gruenberg wrote, pledging to implement the report’s recommendations.
Date: |
Filter
-
USC paid nearly $20 million in Lincoln Riley's first season after poaching coach from Oklahoma, per report
The Trojans paid a king's ransom for the splash hireCBS Sports - Sports -
Democratic Senate campaign chair Sen. Gary Peters says he takes polls "with a grain of salt"
Sen. Gary Peters of Michigan, the chair of the Democratic Senate Campaign Committee, tells "Face the Nation" that he believes Democrats can be elected to the Senate from Arizona and Florida. "I take every poll with a grain of salt," Peters said.CBS News - Top stories -
New Miss USA crowned after former titleholders resign amid controversy
After both Miss USA and Miss Teen USA gave up their titles earlier his month, the Miss USA Organization has crowned a successor.CBS News - Top stories -
Farah Griffin: If Sotomayor flew upside-down flag GOP would call for her resignation
Former White House communications director Alyssa Farah Griffin said Sunday that Republicans would be demanding resignations from liberal justices if they were reported to have displayed upside-down flags on their lawns after former President ...The Hill - Politics -
House approves measure condemning 'calls to defund the police'
The House approved a resolution Friday that condemns “calls to defund the police,” taking aim at the rallying cry embraced by some progressives amid the Black Lives Matter movement. The chamber approved the four-page measure in a 337-61 vote, with ...The Hill - Politics -
Top House Foreign Relations Democrat: Biden message to Israel 'clear and consistent'
Amid criticism from House Republicans, Rep. Gregory Meeks (D-N.Y.) joins Meet the Press NOW to discuss President Biden's policy in the Israel-Hamas War.NBC News - Politics - Joe Biden -
These 16 House Democrats bucked Biden, party leadership on Israel bill
Sixteen House Democrats voted to undo President Biden’s pause on some weapons shipments to Israel on Thursday, breaking with the White House and party leadership, who urged its members to oppose the GOP-led bill. The chamber approved the ...The Hill - Politics - Joe Biden -
‘The house is on fire’: Democrats fear Biden is losing pivotal Georgia
President has shed support among Black voters who helped him defeat Trump in battleground state in 2020Financial Times - Business - Joe Biden -
House Democratic leaders urge caucus to oppose GOP's Israel bill
Politico - Politics - Israel -
House Democrat says cutting federal funds for Harvard 'needs to be on the table'
Rep. Jake Auchincloss (D-Mass.) on Sunday said cutting federal funds for Harvard University and other schools should be an option "on the table" over their handling of campus antisemitism. Auchincloss, who is an alum of Harvard, visited the Ivy ...The Hill - Politics
More from The Hill
-
Bezos's Blue Origin sends first crew to edge of space since 2022
Blue Origin, Jeff Bezos’s rocket company, sent its first crew into space in nearly two years, after a failed uncrewed test flight in 2022 temporarily grounded passenger flights. The New Shepard rocket successfully completed its 25th mission into ...The Hill - Politics -
Julian Assange faces judgement day in years-long fight to stay out of US court
WikiLeaks founder Julian Assange will face a British High Court on Monday to ultimately decide whether the accused classified information leaker will be extradited to the U.S. after more than a decade of legal battles. Assange has been in British ...The Hill - Politics -
The threat of Russian nationalism looms over Europe
A fragile sense of nationhood is one of Russia’s many complexities.The Hill - Politics - Russia -
Maryland governor says ship that hit Baltimore bridge will be removed 'within days'
Maryland Gov. Wes Moore (D) said Sunday that the Dali container vessel that slammed into the Francis Scott Key Bridge in March will be removed from the bay "within days." A container vessel hit the Baltimore bridge in late March, causing the ...The Hill - Politics -
Search and rescue efforts underway after helicopter carrying Iran’s President Raisi has ‘hard landing’
Search and rescue efforts are underway in Iran after a helicopter carrying Iranian President Ebrahim Raisi suffered a "hard landing," state news media reported Sunday. Raisi was traveling in Iran’s East Azerbaijan province, returning from a ...The Hill - Politics