June 13, 2024

Scott Statement on President Biden’s FDIC Nominee

Washington, D.C. – Ranking Member Tim Scott (R-S.C.) released the following statement after President Biden nominated Christy Goldsmith Romero to replace Martin Gruenberg as Chair of the Federal Deposit Insurance Corporation (FDIC). Ranking Member Scott first called for Chairman Gruenberg to resign from the agency last December.

“FDIC employees deserve a safe workplace that allows them to focus on their important mission to safeguard our country’s financial security. Unfortunately, under the leadership of Chairman Gruenberg, that hasn’t been the case,” said Ranking Member Scott. “I will review Christy Goldsmith Romero’s nomination to ensure she has the qualities necessary to support employees, lead the FDIC through the changes it desperately needs, and return credibility to the independent agency. But let me be clear – Chairman Gruenberg should resign immediately. Every day he remains Chairman means the agency can’t move forward and heal or begin the process of restoring a respectable, dignified workplace culture at the FDIC.”

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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