Hagerty Statement on the Independent Investigation of Sexual Harassment and Toxic Culture at the FDIC

WASHINGTON– U.S. Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, today released the following statement regarding the release of the independent investigation into sexual harassment and toxic work culture at the Federal Deposit Insurance Corporation (FDIC):

“The review of the Federal Deposit Insurance Corporation by an independent law firm has only heightened my concerns about the agency’s culture and leadership. According to the FDIC Inspector General, the agency’s inability to adequately prevent the collapse of Signature Bank (the third-largest bank failure in U.S. history) was due in large part to an understaffed investigative team. Additionally, Chairman Grünberg failed to adequately explain the FDIC’s actions related to the failure of Silicon Valley Bank.

“Chairman Gruenberg’s mismanagement of the FDIC’s core functions has not only raised significant leadership concerns, but his conduct over nearly 20 years at the helm of the FDIC – highlighted in this independent report – will undermine his ability to effectively recruit a suitable workforce Given the conclusion that the FDIC’s culture and leadership was the problem, it managed to effectively implement the “structural and cultural change” called for in the report.

“Significant changes are necessary to improve the FDIC’s culture and restore public trust. I call on Chairman Sherrod Brown to hold a hearing on the Banking Committee to specifically examine this matter.”

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