FDIC Chair Martin Gruenberg said sorry to his employees on Tuesday following a probe by a law firm that verified a report of widespread sexual misconduct, inappropriate behavior, and vindictive management practices at the federal banking overseer.
“I want to say sorry again to anyone who encountered sexual harassment or other misconduct at the FDIC,” Gruenberg expressed in a written message. “I also want to apologize for any failures on my part.”
Gruenberg said the investigation undertaken by law firm Cleary Gottlieb Steen & Hamilton presented a “sobering look” inside the FDIC and that he accepted its findings and recommendations. The report is expected to be released publicly Tuesday afternoon.
“Hundreds of our colleagues reported painful experiences of mistreatment and feelings of fear, anger, and sadness,” Gruenberg wrote to staff, pledging to implement the report’s recommendations.
Gruenberg’s note did not say that he would be resigning from the agency, where he has worked for nearly 20 years, despite a call from Republican lawmakers on the Senate Banking Committee in December for him to step down.
The Cleary Gottlieb probe was commissioned by the FDIC following a bombshell investigation by the Wall Street Journal, which painted a picture of the agency as a degenerate boys’ club rife with cases of sexual harassment and misogynistic behavior toward women.
The legal investigation detailed more than 500 cases of misconduct at the FDIC, according to Reuters, citing two sources familiar with the matter. In addition to the misconduct complaints, Cleary Gottlieb also found numerous cases of bureaucratic retaliation against employees who reported their supervisors for bad behavior, according to Reuters.The validation of the Journal report by the legal investigation will intensify pressure for significant changes at the agency, a point that Gruenberg emphasized in his message to employees.
“Implementing meaningful and lasting change to our workplace culture will not be easy,” he remarked.
It will also likely renew calls for Gruenberg’s resignation.
“Due to the critical role of the FDIC in upholding stability and public trust in the nation’s financial system, we urge you to step down as Chairman and Board Member and allow someone with more credibility to address the hostile workplace culture at the FDIC to which you have contributed,” Sen. Tim Scott (S.C.), top Republican on the Banking panel, wrote in December.
FDIC Chair Martin Gruenberg apologized to his staff Tuesday after an investigation by a law firm confirmed a report that sexual misconduct, lewd behavior and retaliatory administrative practices were rampant at the federal banking regulator. “To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry…
“Given the importance of the role of the FDIC in maintaining stability and public confidence in the nation’s financial system, we call on you to step down as Chairman and Board Member and allow someone with more credibility to address the hostile workplace culture at the FDIC to which you have contributed,” the Sen. Tim Scott (S.C.), top Republican on the Banking panel, wrote in December.
