In a recent U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing with the Biden administration’s financial regulators, Ranking Member Tim Scott (R-S.C.) criticized Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg for his leadership of the agency. Scott cited instances of misconduct within the FDIC under Gruenberg's watch, which he argued have impacted the chairman's ability to effectively lead.
Scott emphasized his call for Gruenberg to resign and requested that the Senate Banking Committee hold a separate hearing on an independent report regarding the FDIC. The report detailed allegations of a toxic culture, racial discrimination, and sexual harassment within the agency.
Scott stated in his opening remarks, "There’s no greater responsibility that we have as public servants to make sure that we represent the interests of the American people, that we do it well, and that we do it with character and with integrity."
He went on to describe what employees have described as a “hostile, abusive, and unprofessional” workplace under Gruenberg's leadership. He called for a dedicated hearing to address these concerns.
Scott further criticized Gruenberg for allowing supervisors to refer to disabled veterans in derogatory terms and for creating an environment where employees felt mocked or belittled. He also pointed out instances where female employees reported being sexualized by senior examiners.
The Ranking Member also criticized Gruenberg personally for setting a poor example through his own behavior towards employees. He quoted reports of Gruenberg being “absolutely irate and attacked” his employee and creating an atmosphere where employees felt belittled or threatened.
Scott concluded by questioning why Gruenberg has not been held accountable like other officials who were fired for similar conduct. He suggested that politics might be protecting Gruenberg due to his alignment with the Biden administration’s economic policy agenda.