McHenry Slams Gruenberg for Continued Refusal to Testify on FDIC Workplace Misconduct

McHenry Slams Gruenberg for Continued Refusal to Testify on FDIC Workplace Misconduct
Demands transcribed interview as Republicans continue to investigate the agency's toxic workplace culture

Washington, September 12, 2024 -

House Financial Services Committee Chairman Patrick McHenry (NC-10) sent a letter to disgraced Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg demanding a transcribed interview following his failure to testify before the Committee on widespread workplace misconduct at the FDIC.

Chair Gruenberg's refusal is the latest in a series of attempts to evade responsibility for the entrenched toxic workplace culture as outlined in Cleary Gottlieb's independent report. This lack of transparency comes despite bipartisan calls for his immediate resignation, including by all Committee Republicans. The Committee will continue working to hold Chair Gruenberg accountable for his gross mismanagement of the agency and the misconduct that occurred under his leadership.

Read the full letter here or below:

"I write to express my disappointment in your unwillingness to testify before the House Committee on Financial Services (Committee) on September 19, 2024. The Committee has been investigating the claims of sexual harassment and a toxic workplace environment at the Federal Deposit Insurance Corporation (FDIC) since they were first reported by the Wall Street Journal in November 2023. Over the last eight months, the Committee has conducted transcribed interviews, requested documents, and held hearings to determine the magnitude of the cultural challenges at the FDIC.

"On May 15, 2024, you last appeared before the Committee at a hearing entitled, 'Oversight of Prudential Regulators.' At the hearing, there were bipartisan calls for you to return to answer questions specifically related to the allegations made in the Wall Street Journal. In response to the bipartisan requests, on May 23, 2024, I requested that you appear on June 12, 2024, before the Committee to answer specific questions about the workplace environment at the FDIC. You declined that invitation.

"In the interim, on May 20, 2024, you announced your intent to resign. Your resignation, however, was contingent on the appointment and confirmation of a successor. Notwithstanding efforts in the Senate to confirm a successor, it appears your remaining time is focused on pursuing the financial regulatory agenda of the Biden-Harris Administration rather than cleaning up the FDIC's workplace.

"To that end, on August 14, 2024, Committee Republicans requested that you appear on September 19, 2024, hearing to update the Committee on your efforts to implement the Cleary Gottlieb recommendations. Your refusal to appear is unacceptable. The Committee and the American people deserve an explanation as to why you are pushing a harmful, progressive agenda when serious cultural issues still plague the FDIC.

"Your consistent refusal to accept responsibility is unacceptable. To that end, please provide the reason for your refusal to appear in writing no later than 5:00pm on Thursday, September 12, 2024. Additionally, please schedule a transcribed interview with the Committee as soon as possible. The interview should occur no later than September 30, 2024."

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