Central Montana Times

U.S. Senator Steve Daines today questioned Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg during a Senate Banking hearing regarding an investigation into the workplace culture at the FDIC. The report highlighted issues of sexual harassment, assault, bullying, discrimination, and misconduct under Gruenberg’s leadership.

Daines referenced President Biden's commitment to dismiss employees engaging in misconduct: “On day one of his Administration, President Biden said, and I quote, ‘If you’re ever working with me and I hear you treat another colleague with disrespect or talk down to someone, I promise you I will fire you on the spot. No ifs or buts.’ It’s interesting, given the findings of a recent investigation into the workplace culture at the FDIC that, Chair Gruenberg, I find you’re still sitting here, still with a job, before this committee. How do you reconcile what President Biden said with what’s been going on at the FDIC and the fact you still hold your job?”

Chairman Gruenberg responded: “As I’ve indicated, I accept all the findings of the report... including in regard to my conduct. I’ve committed to addressing the issue personally as well as to having our workforce... regularly give me feedback as well as engaging an executive coach and any necessary counseling. I’m prepared to take responsibility on my part for the findings of the report.”

Daines pressed further: “So how do you resolve your boss saying ‘I promise I’ll fire you on the spot?’ Let’s start... with who’s been fired so far at the FDIC.”

Gruenberg replied: “I can tell you... that this year there have been four employees separated from the agency for misconduct. We have had changes of senior management responsible in this area.”

When asked for clarification on "separated," Gruenberg explained: “It means they’ve either received termination notices from the agency or... they’ve resigned or retired...”

Daines sought specifics on terminations: “How many of them have been terminated?”

Gruenberg stated he would need to follow up but noted that several had received termination notices or other disciplinary actions.

Daines criticized Senate Democrats for allegedly ignoring these issues due to political expediency: “What I find revealing is that some of the same Senate Democrats who have sought to stake their political identities on fighting against sexual harassment and discrimination are sitting here today and frankly turning a blind eye... If President Biden was serious about [his] pledge..., he would have already called for a change in leadership at the FDIC.”

Gruenberg reiterated his commitment to addressing these issues within the agency: “We have been engaged since [last year] in an all-agency effort... We have a comprehensive action plan we’re in the process of implementing. We’ve accepted all [report] findings and committed to implementing all recommendations.”

When Daines asked if President Biden had requested his resignation, Gruenberg did not respond directly.

In December, Daines joined other Banking Republicans in calling for Gruenberg’s resignation.