Topline
A third-party investigation into the Federal Deposit Insurance Corp. found the agency had a culture that allowed for sexual harassment, discrimination and retaliation against employees who expressed concern, multiple outlets reported Tuesday, ahead of the investigation’s release—confirming reports from a Wall Street Journal investigation late last year.
FDIC Chairman Martin Gruenberg reportedly apologized internally to “anyone who experienced sexual ... [+]
Key Facts
The FDIC—which is led by chairman Martin Gruenberg—was riddled with misconduct, the investigation found, and offenders were often reassigned or promoted following complaints, The Wall Street Journal reported Tuesday.
The official report of the investigation, which is expected to be released later in the day, was the result of a five-month probe from the law firm Cleary Gottlieb Steen & Hamilton and was prompted by a Wall Street Journal investigation late last year that alleged the FDIC had a culture of misogyny, sexual harassment, drinking and partying.
The Journal reported in November that women working at the FDIC received lewd comments from male coworkers and were “subject to naked photos from senior bank examiners,” leading many to leave the agency.
In a note to his staff before the report’s release, Gruenberg reportedly said employees “reported painful experiences of mistreatment and feelings of fear, anger, and sadness.”
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Crucial Quote
“To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry I am,” Gruenberg wrote in the internal memo to staff. “I also want to apologize for any shortcomings on my part.”
Big Number
More than 500. That’s how many people at the FDIC reported misconduct, and many were current employees, two people with knowledge of the report told Reuters. In 2022, the FDIC had about 5,600 full-time employees.
Key Background
Gruenberg is a Democrat serving his second term as chairman of the FDIC after receiving a nomination from President Joe Biden in 2022. Gruenberg had been a member of its board since 2005, served as vice chairman from 2005 to 2011 and was chairman from 2012 to 2018, according to the FDIC. After The Wall Street Journal’s initial investigation, Gruenberg maintained he did not know of misconduct allegations, though the new report found Gruenberg had trouble controlling his temper, had been verbally abusive at times to staff and that a number of employees felt “disrespected and poorly treated” by the chairman, the Journal reported.
What To Watch For
Whether the report renews calls for Gruenberg to step down. Republicans urged him to leave office after the initial Wall Street Journal report in November.
