Financial Services Committee Republicans Release Final Staff Report Detailing Toxic Culture at the FDIC Under Disgraced Chair Gruenberg

Washington, November 19, 2024 -

Today, House Financial Services Committee Republicans released their final staff report detailing the toxic workplace culture, including misconduct and harassment, at the Federal Deposit Insurance Corporation (FDIC) under the failed leadership of disgraced Chairman Martin Gruenberg. This report is the culmination of Committee Republicans' year-long investigation and supports the numerous calls for Chairman Gruenberg to resign or be removed immediately.

In advance of tomorrow's hearing with prudential regulators, including Chairman Gruenberg, Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04) and Financial Institutions and Monetary Policy Subcommittee Chairman Andy Barr (KY-06) introduced H.Res. 1574 , a measure calling for Chairman Gruenberg's immediate removal. The resolution is co-sponsored by all Committee Republicans.

Read the staff report in its entirety here or by clicking on the image above.

Read the text of H.Res. 1574, Calling for the removal of Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg from his position, effective immediately, here .

Read the executive summary of the staff report below:

"On January 20, 2021, President Biden warned staffers and appointees, 'I'm not joking when I say this: If you're ever working with me and I hear you treat another colleague with disrespect, talk down to someone, I promise you I will fire you on the spot… On the spot. No ifs or buts.' Clearly, that was an empty threat. Despite numerous allegations of misconduct and harassment, disgraced Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg remains in his role.

"In November 2023, the Wall Street Journal reported allegations of a toxic workplace culture, including harassment and discrimination, at the agency. The article describes instances where senior managers abused their leadership positions by bullying young bank examiners and other subordinates. The articles that followed further describe Chairman Gruenberg's own misconduct and mistreatment of FDIC staff.

"Since November 2023, the House Committee on Financial Services (Committee) has investigated the failures of the agency, which continue to foster a toxic culture that employees have endured for years. Information obtained by the Committee shows the consequences of Chairman Gruenberg's leadership at the agency over the last 20 years. In addition, an independent third-party review contemplated whether Chairman Gruenberg could lead the agency through the necessary cultural changes that must be made at the agency.

"The lack of action from President Biden by allowing Chairman Gruenberg to continue to lead the FDIC puts the safety and stability of our financial system at risk. Because the Biden-Harris Administration has failed to hold its leaders accountable, Subcommittee Chairmen Bill Huizenga (MI-04) and Andy Barr (KY-06), introduced H. Res. 1574 calling for the removal of disgraced FDIC Chairman Martin Gruenberg, effective immediately.

"The next Chairman of the FDIC will need to undo the years of damage to morale and culture at the agency. While Chairman Gruenberg's expected imminent replacement by the incoming Administration is welcome news for FDIC employees and the financial system at large, it is not enough. Taken together, the findings of the Committee's investigation, Cleary Gottlieb's independent review, and Wall Street Journal reporting make clear that Chairman Gruenberg should never be allowed to lead another agency or organization again."

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