FDIC Releases Plan To Address Workplace Culture Issues Amid Calls For Chairman’s Resignation

The Federal Deposit Insurance Corp. (FDIC) released a plan last December to address the issues outlined in an independent review of the agency’s workplace culture that was released on Tuesday.

The report conducted by law firm Cleary Gottlieb Steen & Hamilton exposed a toxic environment that tolerated “hostile abusive unprofessional or inappropriate conduct.”

FDIC Chairman Martin Gruenberg mentioned the plan in an apology posted on the agency’s website on Tuesday. “To anyone who experienced sexual harassment or other misconduct at the FDIC I again want to express how very sorry I am” he said. “I also want to apologize for any shortcomings on my part. As Chairman I am ultimately responsible for everything that happens at our agency including our workplace culture.”

Despite the plan lawmakers from both parties are calling for Gruenberg’s resignation in light of the report’s findings. “The report makes clear new leadership is needed at the FDIC” said House Financial Services Committee Chair Rep. Patrick McHenry (R-NC). Sen. Tim Scott (R-SC) ranking member of the Senate Banking Committee also called for Gruenberg to step down.

The independent review which was ordered by the FDIC’s board following a Wall Street Journal investigation last November found that the agency’s workplace culture fostered incidents of stalking harassment homophobia and other violations of employment regulations. It also questioned Gruenberg’s credibility to lead a cultural transformation given his own behavior as described in the report.