FDIC Investigation Reveals Widespread Sexual Misconduct; After a strong first quarter, UniCredit plans to pay out 10 billion euros to investors

The Federal Deposit Insurance Corporation has failed to create a workplace safe from sexual harassment, discrimination and bullying, raising questions about the agency’s leadershipaccording to the results of an independent investigation published on Tuesday.

The report by law firm Cleary Gottlieb, which stemmed from a Wall Street Journal investigation, collected reports from more than 500 people, some of whom accused FDIC Chairman Martin Gruenberg of engaging in bullying and verbal abuse.

The report paints a disturbing picture of a workplace where misconduct was commonplace, often ignored by managers, and complaints were often met with retaliation. This has led to calls for Grünberg’s resignation and urgent reforms within the FDIC.

In response to the report, Congressman Patrick McHenry, a Republican and chairman of the House Financial Services Committee, called for Gruenberg’s resignation.

“This report confirms that the toxic work culture at the FDIC – starting at the top – has led to deep-rooted and widespread misconduct across the agency,” McHenry said in a statement. “The FDIC must adhere to the same standards of conduct that it imposes on the companies it regulates. The culture of the agency needs to be overhauled.”

“Republicans will ensure that Chairman Gruenberg and other senior FDIC executives are held accountable,” he added.

In a statement to FDIC employees on Tuesday, Gruenberg expressed his intention to remain in the position. He called the report a “sobering look into our workplace” and said he accepted the investigation’s findings.

“To everyone who has experienced sexual harassment or other misconduct at the FDIC, I would like to reiterate how deeply sorry I am,” Gruenberg said. “I would also like to apologize for any lapses on my part. As CEO, I am ultimately responsible for everything that happens at our agency, including our workplace culture.”

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UniCredit is prepared to distribute around 10 billion euros to investors this year, buoyed by strong performance in the first quarter and increased capital resources.

The Milan-based lender said on Tuesday its net sales reached 6.3 billion euros in the first quarter, largely due to increased interest rates, up 10.9 percent from the previous quarter.

With a net profit of 2.6 billion euros, above the bank’s forecast consensus of 2 billion euros and a 24 percent increase from last year, UniCredit has raised its full-year profit forecast to over 8.5 billion euros.

UniCredit’s Russian business also reported a net profit of 213 million euros for the quarter, up from 99 million euros in the same quarter last year. During a conference call with investors, UniCredit CEO Andrea Orcel announced plans to further reduce the bank’s market exposure.

“The remaining cross-border exposure will be settled or refunded by the end of 2025,” Orcel told investors. He added that UniCredit has already reduced its exposure to Russian markets by 91 percent over the past two years.

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A US judge has concluded the US government’s criminal case against Goldman Sachs by dismissing a bribery conspiracy charge related to the bank’s role in the 1MDB scandal in Malaysia.

Between 2012 and 2013, Goldman facilitated the sale of $6.5 billion of bonds for Malaysia’s sovereign wealth fund 1MDB, earning about $600 million in fees. Authorities believe that around $4.5 billion was embezzled. The bank’s Malaysia division pleaded guilty to a corruption charge.

That action came after the bank defaulted on its obligations and paid $2.9 billion in penalties, coinciding with the expiration of a three-year agreement deferring prosecution in October. Goldman did not appeal the decision to drop the charges.

Two former Goldman bankers were involved in the scandal. Tim Leissner, who ran Goldman’s Southeast Asia business, pleaded guilty and is awaiting sentencing. Roger Ng, a former investment banking executive in Malaysia, was convicted in Brooklyn and sentenced to 10 years in prison, but was later extradited to Malaysia in October to cooperate in ongoing investigations.

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Hong Kong has entered into a financial services partnership with Qatar to strengthen ties with the Middle East.

The Hong Kong Financial Services Development Council and the Qatar Financial Center Authority have signed a memorandum of understanding to improve cooperation in their financial sectors.

The partnership includes sharing best practices, conducting joint training workshops and facilitating delegation visits. Both parties will also exchange information on market trends and regulatory developments.

The agreement follows recent initiatives by Hong Kong to strengthen its ties with the Middle East, including similar cooperation with Saudi Arabia’s financial sector development program.