Top Democrat Criticizes Report on Sexual Harassment at FDIC Amid Calls for Martin Gruenberg to Resign

Congresswoman Maxine Waters (D-Calif.), the rating Democrat on the Home Monetary Providers Committee, has criticized a newly revealed investigation into claims of sexual harassment and misconduct on the Federal Deposit Insurance coverage Company (FDIC).

In a press launch on Thursday, Ms. Waters referred to as the probe by legislation agency Cleary Gottlieb Steen & Hamilton into office tradition on the company “troubling.”

Nonetheless, Ms. Waters claimed the report locations the main focus for “tone on the high” solely on the FDIC’s present chief, Martin Gruenberg, a Democrat, whereas ignoring the actions of its former Republican chairs.

“Sadly, the Cleary report diverts consideration from the longstanding institutional challenges confronting the FDIC by spotlighting allegations of temperament raised towards solely considered one of three people who held the Chairmanship of the FDIC in the course of the issues addressed in its evaluation,” the lawmaker wrote.

Underneath Ms. McWilliams’s management, “worker favorability scores of the company declined,” Ms. Waters stated.

In 2018, an nameless group of black workers expressed considerations to then-Chair Jelena McWilliams that they had been mistreated and “afraid to talk out concerning the points they’re going through for concern of repercussions.”

Report ‘Affirms’ Want for Change

In response to their considerations, the FDIC adjusted its promotion and scores programs to rely extra on benefit.

“Equally, investigators knowledgeable Committee workers that allegations of temperament had been additionally raised towards former Chair Sheila Bair however these weren’t included within the report,” Ms. Waters stated.

“By narrowly focusing the report on the present Chair, the authors of the report do a disservice to FDIC workers and impede the general public understanding of the depth of the issues on the FDIC,” Ms. Waters continued.

The congresswoman acknowledged that the newest report “affirms” that the FDIC must roll out modifications to its insurance policies and packages and enhance its office tradition, “notably within the space of anti-sexual harassment.”

“All workers deserve a piece setting free from abuse and the FDIC underneath Democratic and Republican management has failed to offer that,” she wrote. “Chairman Gruenberg should work diligently to repair what’s damaged on the FDIC and to revive the belief of workers in his management and within the group,” the lawmaker added.

“The underside line is Chair Gruenberg and the FDIC Board should promptly implement insurance policies and packages that guarantee there’s a skilled setting the place everybody feels protected and guarded. To revive belief, FDIC should proceed implementing the motion plan I requested of Chair Gruenberg final 12 months, together with the suggestions specified by the report. This have to be the FDIC management’s high precedence.”

The investigation was performed on the request of the financial institution regulator. In accordance with the greater than 200-page report, over 500 people reported experiences of “sexual harassment, discrimination, and different interpersonal misconduct” that they’ve suffered on the FDIC.

“Those that reported expressed concern, disappointment, and anger at what they needed to endure,” the report acknowledged. “Many had by no means reported their experiences to anybody earlier than, whereas others who had reported internally had been left disenchanted by the FDIC’s response.”

Whereas the legislation agency famous that it doesn’t discover Mr. Gruenberg’s conduct to be a “root trigger” of sexual harassment and discrimination on the company or the long-standing office tradition points recognized in its evaluation, it does acknowledge that, “as various FDIC workers put it in speaking about Chairman Gruenberg, tradition ‘begins on the high.’”

Mr. Gruenberg, who has been a member of the FDIC for over 20 years, has since apologized for overseeing a hostile setting, including that the report introduced “a sobering look inside” the FDIC office.

He’s set to seem at a listening to earlier than lawmakers from the Home of Representatives Monetary Providers Committee and the Senate Banking Committee later this month.

The Epoch Instances has contacted the FDIC and former chairs Jelena McWilliams and Sheila Bair for remark.

Andrew Moran contributed to this report.