Democratic and Republican lawmakers are calling for an investigation into the Federal Deposit Insurance Corporation (FDIC) following allegations of a toxic workplace culture and misconduct within the agency. The Wall Street Journal reported that the FDIC has been facing allegations of sexual harassment, misogyny, and general vulgarity towards women.
Senate Banking Committee Chair Sherrod Brown (D-Ohio) expressed concern over the reports, calling for an independent and thorough investigation into the workplace culture at the agency. House Financial Services Committee Chairman Patrick McHenry (R-N.C.) also criticized FDIC Chairman Martin Gruenberg’s management, stating that Gruenberg “set a tone that left alleged harassment and discrimination unpunished at the bank regulator.”
Republicans have particularly voiced their disapproval towards the FDIC, with Senate Banking Committee ranking member Tim Scott (R-S.C.) demanding a thorough and independent review of the allegations and questioning Gruenberg’s fitness to lead the agency. Senate Small Business Committee ranking member Joni Ernst (R-Iowa) went a step further, calling for Gruenberg’s resignation.
The Wall Street Journal’s investigation involved interviews with more than 100 current and former employees, including over 20 women who left the agency. The investigation found that female examiners left the FDIC due to a “sexualized, boys’ club environment” and the belief that they were consistently given fewer opportunities than their male counterparts.
The allegations of a toxic workplace culture and misconduct at the FDIC have sparked calls for accountability and decisive action from lawmakers. The FDIC now faces heightened scrutiny as lawmakers demand an independent investigation into the allegations raised by the Wall Street Journal.