FDIC investigation finds sexual discrimination, harassment at bank regulator – reports

An investigation by a law firm found that sexual harassment, bullying and discrimination had been ingrained at the Federal Deposit Insurance Corporation for years, and the report questioned Chairman Martin Gruenberg's leadership of the regulator, according to media reports.

The report is expected to be released later on Tuesday. Cleary Gottlieb Steen & Hamilton was charged by the FDIC after a Wall Street Journal An investigation in November revealed a toxic culture at the agency.

More than 500 FDIC employees, most of them current, told the law firm about their experiences with misconduct at the FDIC, Wall Street Journal And Reuters mentioned on Tuesday, citing people familiar with the report.

Additionally, the review cited examples of verbal abuse by Grunberg. “The report found that FDIC employees, including senior leaders, felt disrespected and mistreated by Grunberg, and that the Chairman was viewed as unable to control his temper.” Wall Street Journal He said.

The report is is expected To renew pressure on Gruenberg, a Democrat who has led the agency for 10 of the past 13 years. Republicans had called on him to step down Wall Street Journal The report was first released in November.

If Gruenberg leaves, the agency's bylaws call for FDIC Vice Chairman Travis Hill, a Republican, to lead the agency. At that point, the FDIC's board will be evenly divided between Republicans and Democrats.

That could jeopardize President Joe Biden's efforts to impose stricter financial rules on banks, as Republicans have been fighting against the tougher rules, including a pending proposal to raise bank capital requirements.

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