Lafayette Reporter

Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today challenged Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg to apologize to his employees for the reported harassment and bullying they experienced under his leadership. Furthermore, Kennedy urged Gruenberg to step down, suggesting that a more competent leader could enhance the culture at the FDIC.

"You ought to be ashamed of yourself. . . . I'm embarrassed to have to even read some of these allegations,” stated Kennedy. He then questioned Gruenberg directly, “These folks on the first row behind you—are they FDIC employees? Would you like to turn around and apologize to the female employees sitting behind you at the FDIC?” Following this, Gruenberg issued a brief apology to FDIC employees, prompting Kennedy's response: “And now I think you ought to resign.”

The FDIC recently released a report outlining the detrimental culture that has developed at the agency during Chairman Gruenberg’s tenure. Over 500 of the FDIC’s 6,000 employees reported instances of sexual harassment, racial or gender discrimination, verbal abuse or other inappropriate behavior.

Several employees accused Gruenberg of threatening and verbally abusive conduct. Reports indicate that Gruenberg has an explosive temper and frequently berated employees, including one instance where he threw staff papers against a wall. One employee commented, “In my entire career of 35 years, I’ve never had anybody treat me like that.”

Gruenberg has served on the FDIC’s Board of Directors since August 2005. During his tenure, at least 92 employees reported instances of harassment or discrimination to the agency. Investigators discovered that while Gruenberg was on the board, not a single alleged harasser was fired, demoted or had their pay cut by the FDIC.

In 2021, President Joe Biden pledged to immediately dismiss any appointee who disrespected his or her staff. He also stated that he expects each appointee to similarly dismiss employees who disrespect their colleagues. However, Biden has not yet requested Gruenberg’s resignation.

Kennedy initially called for Gruenberg’s resignation last year when allegations of his inappropriate conduct at the FDIC surfaced. He authored an op-ed in The Hill urging Gruenberg to resign so a new leader could address the cultural issues within the agency.