Today, Patrick McHenry, Chairman of the House Financial Services Committee, sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg. In the letter, McHenry demanded that Gruenberg schedule a transcribed interview with the committee by 5:00 PM today. The request also extends to the FDIC’s General Counsel and Director of Legislative Affairs for discussions on the agency’s indemnification process for private counsel.
The demand follows Gruenberg’s alleged failure to comply with Congressional oversight related to misconduct and workplace culture issues at the FDIC. According to McHenry, Gruenberg has not been transparent with Congress and has focused on his policy agenda instead.
In his letter, McHenry wrote: “I write in regard to your repeated failure to set aside partisan priorities and to ensure you follow through on your commitment to be transparent with the House Committee on Financial Services (Committee) about your effort to remedy long standing harassment, including your own, and toxicity in the Federal Deposit Insurance Corporation (FDIC)’s workplace.”
Since November 2023, the committee has been investigating allegations of toxic workplace culture at the FDIC. Despite efforts including hearings and document requests, cooperation from Gruenberg has reportedly been minimal. The last direct communication from him was during a hearing on May 15, 2024.
During that hearing, Gruenberg stated his goal was “to create a workplace where every employee feels safe, valued, and respected.” However, McHenry claims that instead of addressing these issues or being transparent with Congress, Gruenberg has pursued his policy agenda.
McHenry further noted: “Unfortunately for FDIC employees, very few of your proposals address the promised cultural transformation or the prevention of harassment and misconduct at the FDIC.”
The committee had requested Gruenberg’s appearance on September 19 but he did not attend. Instead, McHenry asked for a voluntary transcribed interview by September 30 which did not occur. Now both Director of Legislative Affairs and General Counsel are expected for interviews on October 21.
McHenry concluded: “For those reasons, please make both your Director of Legislative Affairs and General Counsel available to the Committee for transcribed interviews on Monday, October 21, 2024 at 10:00 am… Finally, your interview should be scheduled no later than by 5:00 pm today.”
Gruenberg’s response is awaited as this situation develops.
