WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today asked Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg if he would like to apologize to his employees for the well-documented harassment and bullying that they endured under his leadership.
Kennedy also called on Gruenberg to resign so that a more qualified leader could step in to improve the culture at the FDIC.
“You ought to be ashamed of yourself. . . . I'm embarrassed to have to even read some of these allegations,” Kennedy said.
“These folks on the first row behind you—are they FDIC employees? Would you like to turn around and apologize to the female employees sitting behind you at the FDIC?” Kennedy asked.
Gruenberg then turned and issued a short apology to FDIC employees, after which Kennedy added, “And now I think you ought to resign.”
Background
The FDIC recently published a report detailing the toxic culture that has unfolded at the agency under Chairman Gruenberg’s watch.
More than 500 of the FDIC’s 6,000 employees reported instances of sexual harassment, racial or gender discrimination, verbal abuse or other inappropriate behavior.
Several employees accused Gruenberg of threatening and verbally abusive conduct. Employees reported that Gruenberg has an explosive temper and often berated employees, including one instance where he threw the staff’s papers against the wall. One employee said, “In my entire career of 35 years, I’ve never had anybody treat me like that.”
Gruenberg has been on the FDIC’s Board of Directors since August 2005. During that time, at least 92 employees reported instances of harassment or discrimination to the agency. Investigators found that the FDIC did not fire, demote or cut the pay of a single alleged harasser while Gruenberg was on the FDIC’s board.
In 2021, President Joe Biden vowed to fire any appointee who disrespected his or her staff “on the spot.” The president also said he expects each appointee to similarly fire employees who disrespect their colleagues. Biden has not yet asked for Gruenberg’s resignation.
Kennedy first called for Gruenberg’s resignation last year when revelations of his inappropriate conduct at the FDIC broke. He penned this op-ed in The Hill urging Gruenberg to resign so a new leader could address the culture problems within the agency.
Watch Kennedy’s full exchange with Gruenberg here.
