Nashville Standard

United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, today challenged Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg about his managerial failures during a hearing. Hagerty called on his colleagues to recognize Gruenberg’s responsibility for leading an agency plagued with misconduct and urged him to resign.

The hearing was convened following an independent report detailing sexual harassment and a toxic work culture at the FDIC.

“Chairman Gruenberg…Roughly one in 10 FDIC employees reported experiences of sexual harassment, discrimination, and other interpersonal misconduct. Just the sheer volume of complaints demonstrates serious managerial issues,” stated Hagerty. “A workplace culture like this doesn’t evolve overnight. This is shaped by years of senior management. The report even says, ‘culture starts at the top.’ Well, you’ve been at the FDIC for nearly 20 years, 10 of the past 13 years. You’ve led the agency.”

Hagerty questioned Gruenberg's ability to rectify these issues given his long tenure at the helm of the organization.

“I take full responsibility,” responded Gruenberg. “I’ve also indicated that one of my failures was not recognizing the deep-seated cultural challenge the agency has previously since last December.”

Hagerty then queried about potential succession plans should Gruenberg resign.

“The Vice Chairman would become acting Chairman,” replied Gruenberg.

Upon confirmation that the Vice Chairman is a Republican, Hagerty suggested political motivations were influencing decisions regarding leadership changes at FDIC.

Hagerty further questioned whether preserving technical regulations was being prioritized over addressing workplace misconduct within FDIC.

Gruenberg responded by stating, “I have no higher priority than addressing these issues and protecting the employees of the FDIC.”

Hagerty concluded by expressing disbelief over any willingness to overlook such damning findings in favor of passing a regulatory agenda.