Palmetto State News

U.S. Senator Tim Scott (R-S.C.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, criticized Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg today for his leadership style and its impact on the agency. During his opening remarks at a Committee hearing with the Biden administration's financial regulators, Senator Scott highlighted examples of what he termed as "egregious behavior" by Gruenberg.

Scott reiterated his call for Gruenberg to resign and formally requested the Senate Banking Committee to hold a separate hearing on the FDIC’s independent report. He cited concerns about a pervasive toxic culture, racial discrimination, and sexual harassment within the agency that could potentially hinder its mission.

"There’s no greater responsibility that we have as public servants to make sure that we represent the interests of the American people, that we do it well, and that we do it with character and with integrity," said Scott in his opening remarks. He then addressed what FDIC employees describe as a “hostile, abusive, and unprofessional” workplace under Gruenberg's leadership.

Scott suggested holding a single hearing focused solely on employee concerns at FDIC under Gruenberg's leadership. He emphasized that FDIC employees deserve a healthy workplace where they are treated with respect.

"We’ve all seen the 200-plus pages of the special report," said Scott. "Your employees do not have confidence in you." He went on to detail allegations against Gruenberg and other supervisors at FDIC, including derogatory references to disabled veterans and instances of sexual harassment.

Scott also questioned Gruenberg's ability to change the culture at FDIC. "It doesn’t matter if you believe that you can change the FDIC’s culture—it matters if the employees believe that you can change the FDIC culture," he stated.

The senator concluded by comparing Gruenberg's situation to President Biden firing Inspector General Martin Dickman of the U.S. Railroad Retirement Board for creating a toxic work environment. He questioned why Gruenberg, who was described in the FDIC special report as “harsh,” “aggressive,” and disrespectful towards staff, had not been held to the same standard.