House Financial Services Committee Chairman Patrick McHenry (NC-10) has sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg, demanding a transcribed interview following Gruenberg's failure to testify before the Committee on allegations of widespread workplace misconduct at the FDIC.
Chairman McHenry's letter highlights Gruenberg’s continued refusal to address issues related to an entrenched toxic workplace culture as outlined in Cleary Gottlieb’s independent report. This comes amid bipartisan calls for Gruenberg's immediate resignation, including demands from all Committee Republicans. The Committee aims to hold Gruenberg accountable for what it describes as gross mismanagement and misconduct under his leadership.
In the letter, McHenry expressed disappointment over Gruenberg's unwillingness to testify before the House Committee on Financial Services on September 19, 2024. He noted that the Committee has been investigating claims of sexual harassment and a toxic workplace environment at the FDIC since they were first reported by the Wall Street Journal in November 2023. Over eight months, the Committee conducted transcribed interviews, requested documents, and held hearings to assess these cultural challenges.
McHenry recalled that during a May 15, 2024 hearing titled "Oversight of Prudential Regulators," there were bipartisan calls for Gruenberg to return and answer questions specifically related to these allegations. Despite this request made on May 23, 2024, asking him to appear on June 12, 2024, Gruenberg declined.
On May 20, 2024, Gruenberg announced his intent to resign contingent upon appointing and confirming a successor. However, efforts in the Senate have yet to confirm one. According to McHenry’s letter, it appears that instead of addressing workplace issues at the FDIC, Gruenberg is focused on pursuing the financial regulatory agenda of the Biden-Harris Administration.
Committee Republicans again requested on August 14, 2024 that Gruenberg appear at a September 19 hearing to update them on efforts implementing Cleary Gottlieb recommendations. His refusal was deemed unacceptable by McHenry who stated that both the Committee and American people deserve an explanation regarding why serious cultural issues remain unaddressed while pushing what he described as "a harmful progressive agenda."
McHenry concluded by requesting that Gruenberg provide reasons for his refusal in writing no later than September 12 at 5:00 pm and schedule a transcribed interview with the Committee by September 30.
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