Gruenberg said Tuesday that an investigation undertaken by law firm Cleary Gottlieb Steen & Hamilton presented a “sobering look” inside the FDIC and that he accepted its findings and recommendations.
The probe was commissioned by the FDIC following a bombshell investigation by the Wall Street Journal, which painted a picture of the agency as a degenerate boys’ club rife with cases of sexual harassment and misogynistic behavior toward women.
There were reportedly more than 500 people at the FDIC that reported cases of misconduct at the agency as detailed in the legal investigation.
“To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry I am,” Gruenberg wrote. “I also want to apologize for any shortcomings on my part.”
“Hundreds of our colleagues reported painful experiences of mistreatment and feelings of fear, anger, and sadness,” Gruenberg also said in the note, which did not say that he would be resigning from the agency.
Rep. Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee, said Tuesday that it’s time for Gruenberg, who has worked at the agency for nearly 20 years, to resign.
“The independent report released today details his inexcusable behavior and makes clear new leadership is needed at the FDIC,” he said.
“The FDIC must be held to the same standards of conduct it imposes on the entities it regulates. The agency’s culture must be overhauled.”
The Hill’s Tobias Burns has more here.
