May 10, 2024, Fairfax, Va.—Americans for Limited Government President Rick Manning issued the following statement in response to an independent report ordered by the Special Review Committee of the FDIC’s Board of Directors alleging workplace harassment and misconduct under the watch of FDIC Chairman Martin Gruenberg, urging his resignation or firing:
“On his first day in office, President Joe Biden stated ‘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.’ The question is whether he was serious. An independent report ordered by the Special Review Committee of the FDIC’s Board of Directors as a result of employee complaints about abuses at the bank regulator paints a damning image of the culture fostered by FDIC Chairman Martin Gruenberg wherein ‘the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct.’
“The report specifically found that Gruenberg has verbally abused employees by demonstrating a volatile temper and ‘having been with the FDIC for almost 20 years, and having served as its head for ten of the last thirteen years, leading cultural transformation at an agency that he has led for so long presents unique challenges…’ that ‘hinder his ability to establish trust and confidence in leading meaningful culture change…’
“On May 15 and May 16, House and Senate committees overseeing the FDIC will be hearing testimony from top bank regulators including Gruenberg. In response to the report, Sen. Joni Ernst issued a statement asking pointedly ‘When is Martin Gruenberg’s last day?’ and noted ‘Drunken debauchery, creepy conversations, and an all-around inappropriate atmosphere’ at the agency. Gruenberg’s running of the FDIC with a culture that is equivalent to ‘bankers gone wild’ meets the standard President Biden set for himself for firing his appointees, and if Gruenberg doesn’t resign, he should be fired.”
Attachments: Report for the Special Review Committee of the Board of Directors of the Federal Deposit Insurance Corporation, Cleary Gottlieb Steen & Hamilton LLP, May 7, 2024, https://www.fdic.gov/sites/default/files/2024-05/cleary-report-to-fdic-src.pdf
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