Lafayette Reporter

Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, has called on President Joe Biden to dismiss Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg. Kennedy stated that an eventual resignation from Gruenberg would not safeguard the employees who have experienced ongoing harassment at the agency during his tenure.

In his speech, Kennedy stated, “I don’t remember seeing any exceptions in the MeToo Movement for President Biden’s appointees to the Federal Deposit Insurance Corporation. We call it the FDIC. There’s not supposed to be a carve-out for bigots and perverts at the FDIC to harass their coworkers when they’re supposed to be regulating America’s banks. So why hasn’t President Biden shown FDIC chairman, Mr. Martin Gruenberg, and his leadership team the door? Why hasn’t he fired them?”

Kennedy further criticized Gruenberg's conduct, saying, “Mr. Gruenberg didn’t just supervise the harassment at the FDIC. According to the report, he participated in it. According to Mr. Gruenberg’s employees, Chairman Gruenberg repeatedly ‘disrespected, disparaged, and mistreated’ his staff."

He added that "Mr. Gruenberg and every single member of senior management ought to hide their heads in a bag... These folks ought to quit, and they ought to quit today. And if they don’t, President Biden should fire them.”

Kennedy concluded by urging immediate action: “President Biden correctly said that he would fire ‘on the spot’ any appointee who disrespected other members of his staff... The evidence is plentiful that Chairman Gruenberg disrespected his staff and allowed a toxic culture to bloom at the FDIC... He should resign immediately."

The FDIC recently published a report detailing a toxic culture under Chairman Gruenberg’s watch with over 500 of its 6,000 employees reporting instances of harassment, discrimination, or other inappropriate behavior. Gruenberg has been on the FDIC’s Board of Directors since August 2005, and during his tenure, at least 92 employees reported instances of harassment or discrimination to the agency.

In 2021, Biden pledged to dismiss any appointee who disrespected their staff “on the spot.” However, he has not yet asked for Gruenberg’s resignation. Kennedy had previously called for Gruenberg’s resignation last year following revelations of his inappropriate conduct at the FDIC.