After an independent report cited widespread abuse in the Federal Deposit Insurance Corporation (FDIC), U.S. Sen. Tommy Tuberville (R-Auburn) called on the chairman to resign.
Tuberville wrote on Twitter on Wednesday, “After yesterday’s report, Joe Biden’s FDIC Chair Marty Gruenberg doesn’t have a leg to stand on. As leader of this key banking regulatory agency for 10 of the last 13 years, he is responsible for the agency’s morally bankrupt culture. He must resign.”
FDIC chairman Martin Gruenberg apologized to staff after findings that sexual misconduct, lewd behavior and retaliatory administrative practices were widespread at the federal banking regulator.
The private law firm report confirmed that the FDIC failed to provide a workplace safe from sexual harassment, discrimination and fear of retaliation. It called for a “necessary” cultural and structural change at the federal banking regulator.
The investigation sharply criticized the toxic work environment at the FDIC. The “patriarchal, insular, and risk-adverse culture has resulted in the underreporting of misconduct and the response from management has been insufficient,” the report said.
Gruenberg said Tuesday that the investigation presented a “sobering look” inside the FDIC and that he accepted its findings and recommendations.
The probe had been commissioned by the FDIC after an investigation by the Wall Street Journal painted a picture of the agency as a “degenerate boy’s club” with extensive cases of sexual harassment and misogynistic behavior toward women.
There were more than 500 people at the FDIC who reported cases of misconduct included in the legal investigation.
Alabama's senior U.S. Senator also released a statement on Wednesday in which he urged President Joe Biden to remove Gruenberg should the FDIC chair refuse to resign.
"President Biden is on record telling White House staff 'I will fire you on the spot' for failing to treat colleagues with respect. I hope President Biden will be true to his word," he stated. "Chairman Gruenberg has fallen short of this standard and should be removed from office by the President if he refuses to resign."
U.S. Rep. Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee, said Tuesday that it’s time for Gruenberg, who has worked at the agency for nearly 20 years, to resign.
“The independent report released today details his inexcusable behavior and makes clear new leadership is needed at the FDIC,” he said. “The FDIC must be held to the same standards of conduct it imposes on the entities it regulates. The agency’s culture must be overhauled.”
The first Democrat to call for Gruenberg’s resignation was U.S. Rep. Bill Foster (D-Ill.) He was joined some fellow Republicans.
In Gruenberg’s apology, he did not say whether he would resign.
Jim ‘Zig’ Zeigler writes about Alabama’s people, places, events, groups and prominent deaths. He is a former Alabama Public Service Commissioner and State Auditor. You can reach him for comments at ZeiglerElderCare@yahoo.com.
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