Many workplaces have hostile atmospheres. The FDIC isn’t immune. An independent review questioned whether the current chairman could continue to lead. The law firm Cleary Gottlieb Steen & Hamilton reported incidences of at least stalking, harassment, and homophobia through all locations. Over 500 workers made reports. The Wall Street Journal brought this up last November, prompting the review.
Hostile in a couple ways
The report said incidents ”arose within a workplace culture that is ‘misogynistic,’ ‘patriarchal,’ ‘insular,’ and ‘outdated’ — a ‘good ol’ boys’ club where favoritism is common, wagons are circled around managers, and senior executives with well-known reputations for pursuing romantic relations with subordinates enjoy long careers without any apparent consequence.” The Chairman’s behavior was also scrutinized.
According to the report, Chairman Martin Gruenberg’s “reputation raises questions about the credibility of the leadership’s response to the crisis and the ‘moral authority’ to lead a cultural transformation.” The chairman let it happen.
The report continued,
“Far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct. We also find that a patriarchal, insular, and risk-averse culture has contributed to the conditions that allowed for this workplace misconduct to occur and persist, and that a widespread fear of retaliation, as well as a lack of clarity and credibility around internal reporting channels, has led to an underreporting of workplace misconduct over the years.”
The hostile got buried
This past December a plan was released to deal with the problems and Gruenberg issued an apology on the website.
“To anyone who experienced sexual harassment or other misconduct at the FDIC, I again want to express how very sorry I am. I also want to apologize for any shortcomings on my part. As Chairman, I am ultimately responsible for everything that happens at our agency, including our workplace culture.”
Lawmakers want him out. An apology isn’t good enough.
House Financial Services Committee Chair Rep. Patrick McHenry said this “makes clear new leadership is needed at the FDIC”. Sen. Tim Scott said he needs to move on. “It’s time for Chairman Gruenberg to resign so the FDIC can move forward with the leadership it deserves and desperately needs.”
Hostile conduct
Republicans called on Gruenberg to step down. There were “deeply unsettling exchanges” between the chair and subordinates.
House Majority Whip Tom Emmer stated, “The FDIC is in disarray under Marty Gruenberg’s failed leadership. He must resign.” French Hill of the House Financial Services Committee wasn’t happy with him. “I recently met with Chairman Gruenberg over the allegations connected with his management of the FDIC. I was very disappointed in his response to my questions and upon reading the independent report released today, I believe it’s in the best interest of the FDIC, its employees, and the industry for him to resign.”
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Author: Patti Krahn-Hamblet
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