Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg during a House Financial Services Committee hearing in Washington, DC, USA, on Wednesday, May 15, 2024.
Graeme Sloane | Bloomberg | Getty Images
According to a new memo from the agency’s internal regulator, the Federal Deposit Insurance Corp. Failing to timely report allegations of misconduct by senior officials.
The letter, sent by Inspector General Jennifer Fain to Chairman Martin Gruenberg, is the latest development in a months-long investigation into sexual abuse and harassment at the FDIC. Grünberg announced Monday that he plans to step down as soon as his successor is determined.
The inspector general’s office has learned of “multiple allegations of misconduct against senior FDIC officials that were not timely reported to the OIG,” the letter, dated Thursday, said. “The OIG is now reviewing these allegations to determine how they should be integrated into the OIG’s work plans.”
Fain wrote in the letter that the regulator is contacting the FDIC’s Office of Minority and Women Inclusion and other employee relations departments “to determine whether there are additional allegations that were not reported to the OIG.”
In its response to the memo, the FDIC said it “welcomes the coordination with the OIG to develop and implement a process for notifying the OIG of allegations of misconduct, the inclusion of the OIG hotline as a reporting option for misconduct, and the reminder to FDIC staff.” the obligation to report to the OIG.”
A damning independent report released in April found a widespread culture of harassment and discrimination at the FDIC and cited allegations from more than 500 FDIC employees.
“The FDIC has failed to create a workplace that is safe from sexual harassment, discrimination, and other interpersonal misconduct,” the report concludes.
The investigation also described Gruenberg – a Democrat who was nominated by President Joe Biden in 2022 – as having a hot temper that left employees feeling “unsafe, unsettled and humiliated.”
Republican lawmakers quickly called for Gruenberg’s resignation and are still pushing for him to step down immediately before a successor is named.
On Thursday, the Republican-led House Financial Services Committee sent letters to Gruenberg and two other FDIC officials asking them to appear before the committee on June 12 to discuss the investigation’s findings.
Gruenberg testified before the same committee on May 15.
If Gruenberg’s position were to become vacant, the FDIC’s acting chairman, Republican Travis Hill, would assume the chairman’s responsibilities and the agency’s board would be deadlocked.
After Grünberg’s resignation announcement, a White House spokesman said Biden would nominate his nominee for the position “soon.”
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2024-05-24 20:11:57
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