A report on the workplace culture of the Federal Deposit Insurance Corporation released Tuesday revealed a widespread pattern of sexual harassment, discrimination and abuse by senior executives, mostly against women and members of minority groups. The findings could lead to another potentially bruising round of questions for agency chief Martin Grunberg, who is scheduled to testify before Congress later this month.
The FDIC, which has the authority to monitor the health and stability of all U.S. banks, oversees smaller firms too closely, affects “too many employees” and “goes too far,” the report said.
The report, prepared by law firm Cleary Gottlieb, said the agency’s problems stemmed from a “patriarchal, insular and risk-averse culture” and a “lack of clarity and credibility in internal reporting channels”. It described “fiftoms” in regional offices where senior managers shielded other longtime employees from the potential consequences of allegations of misconduct by more junior employees.
Examples of behavior include senior recruiters texting pictures of junior women’s genitals or taking them to brothels. reported By The Wall Street Journal in November. Tuesday’s report was the result of an independent investigation by Cleary Gottlieb, hired by a special committee formed by the agency’s board after The Journal’s report.
Having worked at the agency for almost two decades and led it for 10 of the last 13 years, Mr. The report questioned whether Grunberg could continue effectively in his role.
“Incidents of losing his temper and venting his anger at staff – and the resulting reputation – may hinder his ability to establish trust and confidence in driving meaningful cultural change,” it said. Report Mr. It also cited Grunberg’s “apparent inability or unwillingness to understand how others experience certain difficult interactions with him.”
In a memo shared with The New York Times to FDIC employees on Tuesday, Mr. Grunberg apologized for his behavior.
“To anyone who has experienced sexual harassment or other misconduct at the FDIC, I want to reiterate how sorry I am. I apologize for any wrongdoing on my part. I take responsibility as a leader for everything that happens at our company, including our workplace culture,” she wrote.
Mr. The report did not recommend that Grunberg resign or be fired. It recommended new systems to protect victims of abuse, a new role to monitor culture, more training to improve workplace behavior and better reporting systems for employees who experience abuse.
But it was Mr. Grunberg will prompt new calls for departure. Republicans in Congress have been calling for his resignation since last fall, while Democrats have called for an independent investigation after The Journal reported on his conduct.
Mr. Grunberg’s career is in jeopardy. Mr. If Grunberg leaves the FDIC, he believes the plan won’t have enough support among other regulators. should be weeded.
Mr. Grunberg is scheduled to testify at the House Financial Services Committee on May 15 and the Senate Banking Committee on May 16 at semiannual hearings on financial regulation.
