WASHINGTON — Sen. Tim Scott, R-S.C., the ranking member of the Senate Banking Committee, has called on Federal Deposit Insurance Corp. Chairman Martin Gruenberg to resign, the latest in a series of escalating pressure from lawmakers following reports of a toxic culture at the regulator.
The scandal was sparked by a Wall Street Journal report last month, which detailed sexual harassment, discrimination and otherwise problematic behavior by FDIC employees spanning a decade or more. A letter, signed by Scott and other committee Republicans, including Sens. Thom Tillis of North Carolina, Cynthia Lummis of Wyoming, Kevin Cramer of North Dakota and Steve Daines of Montana, cited reports of Gruenberg's own behavior and "a reputation for bullying and for having an explosive temper."
During congressional hearings, Gruenberg has said that harassment and toxic behavior is "completely unacceptable," and the FDIC will investigate the claims. The agency has moved ahead with that promise, establishing a
But the letter's signatories said those moves were insufficient to resolve the concerns outlined by the report.
"The culture of an organization is set from the top," the Republican lawmakers said in Thursday's letter. "As such, we have significant concerns with your ability to continue leading the FDIC as it seeks to clean up its public image and provide much-needed changes to its workplace culture to return the FDIC to working order. Given the importance of the role of the FDIC in maintaining stability and public confidence in the nation's financial system, we call on you to step down as Chairman and Board Member and allow someone with more credibility to address the hostile workplace culture at the FDIC to which you have contributed."
Scott is now the highest ranking lawmaker to call for Gruenberg's resignation. While others have criticized the culture of the FDIC — including Gruenberg himself — most leading lawmakers have fallen short of asking for a resignation.
The lawmakers also requested Gruenberg to confirm or deny the allegations laid out against him regarding his behavior in the news report, and that the agency provide records of complaints related to the working environment at the FDIC, and regarding Gruenberg's role in it.
