Lafayette Reporter

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, questioned Federal Deposit Insurance Corporation (FDIC) Chair nominee Christy Goldsmith Romero about Cleary Gottlieb Steen and Hamilton LLP’s report on the numerous claims of harassment at the FDIC.

Kennedy’s full exchange with Romero is below:

Kennedy: “I know you've read the Cleary Gottlieb report. Is that correct?”

Romero: “Yes, Senator.”

Kennedy: “I've watched a lot of powerful people in this town try to cover it up. They said, ‘Oh, it's bad, but don't worry: The FDIC chairman will fix it.’ It was—this was—the same FDIC chairman who had been at the agency since God was a corporal, and under whom all this stuff happened. And, fortunately, that point of view didn't prevail.

“Here's the way I read the report: 97 people at that agency reported 145 separate incidents of sexual assaults. 91 others reported 141 separate incidents of gender- or sexuality-based discrimination. 187 people reported 320 separate incidents of verbal abuse. Over 500 people . . . came forward about discrimination, harassment, mistreatment they faced at the FDIC.

“Now, I listened to you say all the right words, and you talked about accountability, and you talked about refurbishing the tarnished reputation of the agency, and you talked about listening. And I appreciate all that, but the phrase that got my attention was, ‘send a clear message that this won't be tolerated.’

“If you want to do that, what you need to do before you do your listening tours or all that other stuff, you need to investigate every one of these allegations—every single one—and find out if they're true. And if they are true then somebody ought to be—the person who's responsible—should be fired should be sued and/or should be prosecuted. And then you'll have a cleaner agency.

“Now I don't have any questions. You're either going to do it or you're not. But I think a lot of the members of the committee agree with me: We're going to be watching. Every time the FDIC comes before the Banking Committee as long as I'm on it I'm going to ask you about progress with specificity.”

Background:

Kennedy introduced the FDIC Discrimination Relief Act of 2024 to empower current and former FDIC employees who experienced discrimination or sexual harassment to have their day in court.

The FDIC recently published a report detailing the toxic culture that has unfolded at the agency under Chairman Martin Gruenberg’s watch.

More than 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. Employees reported that Gruenberg has an explosive temper and often berated employees including one instance in which he reportedly threw staff papers against a wall. One employee said “In my entire career of 35 years I've never had anybody treat me like that.”

Gruenberg has been on the FDIC’s Board of Directors since August 2005. During that time at least 92 employees reported instances of harassment or discrimination to the agency. Investigators found that the FDIC did not fire demote or cut pay for any alleged harasser while Gruenberg was on its board.

In 2021 Biden vowed to fire any appointee who disrespected his or her staff “on-the-spot.” The president also said he expects each appointee similarly fire employees who disrespect their colleagues Biden has not yet asked for Gruenberg's resignation.

Kennedy called for Gruenberg’s resignation last year when revelations broke regarding his inappropriate conduct at FDIC He penned an op-ed in The Hill urging Gruenberg's resignation so new leadership could address cultural problems within agency