Lafayette Reporter

Sen. John Kennedy (R-La.), a member of the Senate Appropriations and Banking Committees, recently questioned acting Labor Secretary Julie Su regarding an independent report that exposed the Federal Deposit Insurance Corporation's (FDIC) failure to provide a safe workplace free from sexual harassment, discrimination, and other forms of misconduct.

During the questioning, Kennedy confirmed Su's commitment to protecting America’s employees, including those at the FDIC. However, Su admitted that she had not seen the report detailing the years-long abuses at the agency.

The report documents FDIC Chairman Martin Gruenberg’s reputation for having a temper and cites an instance in 2008 where he reportedly "castigated" a senior FDIC executive. In response to these findings, Kennedy asked Su about her plan of action and whether she would call for Gruenberg's resignation.

Kennedy stated, “This is just [as] egregious as I've ever seen and I suspect [as] you've ever seen... Are you going to call for Martin Gruenberg, who runs the place, to resign? He's been there since 2005... For the Biden administration, does ‘Me Too’ apply except at the FDIC?"

Despite Kennedy's strong questioning, Su did not call on Gruenberg to resign. Instead, she offered to ensure that the Equal Employment Opportunity Commission was aware of this case.

In November 2023, Kennedy had previously questioned Gruenberg during a Senate Banking Committee Hearing about reports indicating his failure to address sexual harassment and other inappropriate behavior within the agency. At that time too, he called on Gruenberg to resign in light of these reports.

The May 2024 independent report found that many employees felt unsafe due to sexual harassment, discrimination and other misconduct at FDIC. It also highlighted a patriarchal culture within the organization that contributed to such behavior. The report also revealed that fear of retaliation led to under-reporting of workplace misconduct over the years.

The report concluded that the management's responses to allegations of misconduct were insufficient and ineffective, and recommended cultural and structural changes to address these issues. It also pointed out that none of the ninety-two harassment complaints made through its Anti-Harassment Program from 2015 to 2023 resulted in any serious disciplinary action.