close
close
hsuses

There was reportedly a culture of harassment and discrimination at the FDIC under Martin Gruenberg

Theo

Top line

An independent investigation by the Federal Deposit Insurance Corp. revealed that the agency had a culture that allowed sexual harassment, discrimination and retaliation against employees who raised concerns, multiple media outlets reported Tuesday ahead of the investigation’s release – confirming reports from a Wall Street Journal investigation late last year .

Important facts

The investigation found that the FDIC — which is led by Chairman Martin Gruenberg — was plagued by misconduct and offenders were often transferred or promoted based on complaints, the Wall Street Journal reported Tuesday.

The official investigative report, expected to be released later today, was the result of a five-month investigation by 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 colleagues and were “exposed to nude photos of senior bank examiners,” prompting many to leave the agency.

In a note to his employees before the report’s release, Gruenberg reportedly said that employees “reported painful experiences of mistreatment and feelings of fear, anger and sadness.”

Get text alerts on Forbes breaking news: We’re introducing SMS alerts to ensure you’re always on top of the most important news breaking the day’s headlines. Text “Alerts” to (201) 335-0739 or log in Here.

Crucial quote

“To everyone who has experienced sexual harassment or other misconduct at the FDIC, I would like to once again express how deeply sorry I am,” Gruenberg wrote in the internal memo to employees. “I would also like to apologize for any lapses on my part.”

Big number

More than 500. That’s how many people at the FDIC reported wrongdoing, and many were current employees, two people with knowledge of the report told Reuters. In 2022, the FDIC employed approximately 5,600 full-time employees.

Important background

Gruenberg is a Democrat serving his second term as FDIC chairman after being nominated by President Joe Biden in 2022. Gruenberg had been a member of the board since 2005, served as vice chairman from 2005 to 2011 and was chairman from 2012 to 2018, according to the FDIC. After the initial Wall Street Journal investigation, Gruenberg claimed he was unaware of allegations of misconduct, although the new report found that Gruenberg had difficulty controlling his temper, had at times been verbally abusive toward employees, and that a number of employees ” “felt disrespected and mistreated” by the chairman, the Journal reported.

What you should pay attention to

Whether the report renews calls for Grünberg to resign. After the Wall Street Journal’s initial report in November, Republicans urged him to resign from office.

further reading

ReutersA US investigation finds widespread sexual misconduct at the FDIC, sources said

Related Posts