House Hearing Addresses Reports of Harassment, Discrimination at FDIC

Lawmakers from both parties criticized FDIC Chair Martin Gruenberg during a hearing on Wednesday following reports of sexual harassment and discrimination at the agency.

For Context: In November 2023, the Wall Street Journal (Center bias) pushed an article detailing allegations of misconduct, harassment, and toxic working conditions at the FDIC. This led to the launch of a investigation conducted by a law firm into the FDIC, which concluded, “the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct.”

Key Quotes: During the House Financial Services Committee hearing, Republican committee members called on Gruenberg to resign. Rep. Patrick McHenry (R-NC) stated, “The fact that you've not yet resigned proves that you take no responsibility for your actions and the words that you've used so far.” Democratic members did not go so far as to call on Gruenberg to resign but expressed anger at the findings of the report. Rep. Stephen Lynch (D-MA) told Gruenberg, “You’re on a short leash. A lot of people here would like to see you gone, to be honest with you. I’m not so sure you’re the guy to make the changes, but maybe you are. Maybe you can prove that to us. I don’t know, I don’t know.”

How the Media Covered It: The Hill (Center bias) included a quote from Rep. Maxine Waters (D-CA) accusing the Republican committee members of bias for calling on Gruenberg, a Democrat, to resign, but not the Republican FDIC leaders.