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McClain, Biggs Launch Probe into Allegations of Sexual Harassment and Discrimination at Federal Deposit Insurance Corporation

WASHINGTON—Subcommittee on Health Care and Financial Services Chairwoman Lisa McClain (R-Mich.) and Rep. Andy Biggs (R-Ariz.) are today opening an investigation into recent reports about toxic workplace culture at the Federal Deposit Insurance Corporation (FDIC). In a letter to FDIC Chair Martin Gruenberg, the lawmakers warn that allegations of a culture of harassment and discrimination weakens the credibility of an agency established to maintain confidence in financial institutions in times of crisis. The lawmakers request documents, communications, and a briefing related to allegations of sexual harassment and discrimination at FDIC.

“The reports by The Wall Street Journal describe an abusive culture of sexual harassment, and discrimination within the FDIC, and a lack of internal processes encouraging reporting and effective responses to such allegations. FDIC was established to restore and maintain confidence in times of crisis. On the heels of several bank failures which shook confidence in the banking system and led the Biden Administration to take unprecedented steps to contain further panic, the allegations of a culture of tolerating harassment at the FDIC weakens the credibility of your agency,” the lawmakers wrote.

In November 2023, The Wall Street Journal issued reports detailing Mr. Gruenberg’s failure to address a culture of sexual harassment and discrimination at FDIC. Mr. Gruenberg was questioned at a November 2023 hearing before the House Financial Services Committee and had to issue a correction to his testimony confirming that he had been investigated for inappropriate conduct previously, in 2008.

“According to a FDIC Inspector General report from July 2020, the FDIC had ‘not established an adequate sexual harassment prevention program and should improve its policies, procedures, and training to facilitate the reporting of sexual harassment allegations.’ Based on these reports it appears that instead of addressing these issues, the FDIC may have turned a blind eye to sexual harassment and discrimination within its staff,” the lawmakers continued.

Read the letter to FDIC Chair Martin Gruenberg here.

Whistleblowers are encouraged to alert the House Committee on Oversight and Accountability to fraud, abuse, and misconduct at their agency or any other organization at the Committee’s whistleblower page.

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