Fdic Chief Faces Gop Calls To Resign Over Report On Workplace Harassment

Federal Deposit Insurance Corp. Chair Martin Gruenberg on Tuesday acknowledged that a soon-to-be-released report on harassment at the agency is a “sobering look inside our workplace,” as GOP lawmakers called for his resignation.

The FDIC is set to release the findings of an independent look into allegations that the agency fostered a workplace rife with sexual harassment, discrimination, bullying and other misconduct, charges that were earlier reported by the Wall Street Journal.

The report by law firm Cleary Gottlieb Steen & Hamilton will be released later on Tuesday, according to the FDIC. Before the official release of the report, Gruenberg sent a message to agency employees.

“To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry I am,” he said in the message. ”I also want to apologize for any shortcomings on my part. As Chairman, I am ultimately responsible for everything that happens at our agency, including our workplace culture."

Gruenberg, who was nominated by President Joe Biden after serving a previous stint atop the agency during the Obama administration, has faced calls for his resignation by Republican lawmakers. He has led the agency for 10 of the past 13 years.

His departure could impede an effort by Biden-era regulators to finalize a series of tougher regulations against banks, including an increase in capital requirements that the industry is vigorously fighting.

“After today’s report, no one can deny the depth of the FDIC cesspool that I have been sounding the alarm on for months,” Sen. Joni Ernst (R-Iowa) said in a statement released before the report came out. “The culture Chairman Martin Gruenberg has allowed and perpetuated at the FDIC for over a decade is a failure of leadership and a degradation of humanity.”

Cleary Gottlieb investigators are slated to brief Republicans on the House Financial Services Committee on the report on Thursday morning, said a House aide granted anonymity to discuss unannounced plans.

Eleanor Mueller contributed to this report.