Following Inspector General Report, Scott Once Again Calls on Gruenberg to Show Respect for FDIC Employees, Resign
The Ranking Member’s statement follows the release of the FDIC Office of Inspector General’s report detailing the agency’s failure to implement an effective sexual assault prevention program.
Washington, D.C. – Over eight months after initially calling for his resignation, and following the Federal Deposit Insurance Corporation’s (FDIC) Office of Inspector General (OIG) report detailing the agency’s failure to implement an effective sexual assault prevention program, Ranking Member Tim Scott (R-S.C.) issued the following statement reiterating demands for FDIC Chairman Martin Gruenberg to step down from the agency – a long-overdue and necessary decision to support employees and fix the FDIC’s toxic culture. The Ranking Member noted that Gruenberg is overseeing the creation of new offices to handle employee complaints while continuing to advance his own regulatory agenda.
“Last December, after it became clear FDIC Chairman Gruenberg and his top deputies allowed and even contributed to a ‘hostile, abusive, and unprofessional’ workplace at the agency for almost two decades, I called for his resignation and noted it was the only way the FDIC could support its employees, hold bad actors accountable, and restore a respectable office culture. And for months, I’ve continued to push Chair Gruenberg to make this commonsense decision.”
“Sadly Gruenberg, the Biden administration, and their Democratic allies seem to care more about their progressive regulatory agenda than protecting workers. Today’s report – which detailed serious failures to address allegations of sexual harassment promptly and effectively – makes clear the agency is not taking appropriate action to aid the men and women of the FDIC. On top of that, Chair Gruenberg used the FDIC’s recent Board meeting to push through another slate of partisan wish-list proposals which will lead to consumer harm and continues to oversee the creation of new offices to handle employee complaints. Chair Gruenberg should stop playing politics and do the right thing by stepping down. And if he won’t resign, President Biden should fire him – immediately.”
BACKGROUND:
Following the initial reports of sexual harassment and a toxic workplace culture at the Federal Deposit Insurance Corporation (FDIC), Ranking Member Scott released a statement promising to “continue to conduct rigorous oversight of the FDIC to ensure these problems are addressed, bad actors are held accountable, and a respectable office culture is restored at the agency.”
In December, the Ranking Member led fellow Banking Committee Republicans in calling on Chairman Martin Gruenberg to provide detailed information regarding the allegations of a toxic workplace culture and to resign as Chairman and Board Member. In March, following months of silence despite Chairman Gruenberg promising transparency, Ranking Member Scott renewed his demands for information and again called for Gruenberg to step down.
After the recent release of an independent report investigating allegations of sexual harassment and a toxic work culture at the agency, Ranking Member Scott released a statement urging “Chairman Gruenberg to resign so the FDIC can move forward with the leadership it deserves and desperately needs to ensure employees and the important work of this agency are supported.” During the Senate Banking Committee hearing with Chairman Gruenberg, Ranking Member Scott reiterated his call for Chairman Gruenberg to resign and formally requested the Senate Banking Committee to hold a separate hearing on the FDIC’s independent report, citing the effects the pervasive toxic culture, racial discrimination, and sexual harassment could have on the agency's ability to carry out its important mission.
FDIC employees may confidentially contact Ranking Member Scott’s Committee staff if they desire to make a protected disclosure of information regarding waste, fraud, or abuse – including, but not limited to, sexual harassment or discrimination – or any other misconduct occurring at the FDIC. To share such information, FDIC employees may email RepWhistleblowers@banking.senate.gov or call 202-224-4287.
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