The Federal Deposit Insurance Corporation is going to great lengths to address rampant claims of sexual assault and harassment, according to an independent report commissioned by the top bank regulator.
Following a five-month investigation initiated by law firm Cleary Gottlieb, more than 500 individuals reported cases of misconduct at the agency, most of whom are current FDIC employees.
Additionally, Gottlieb found indications pointing to extensive retaliation against employees who made mention of supervisor misconduct and little evidence showing any action taken toward such retaliations, according to the New York Post.
FDIC Chair and Democrat Martin Gruenberg, senior leader at the agency for almost two decades, said in a statement to staff that the report offered a "sobering" look at the regulator and revealed hundreds of staff "reported painful experiences of mistreatment and feelings of fear, anger, and sadness."
Gruenberg also said he was "ultimately responsible" for what transpired at the agency and apologized for his failings.
The inquiry was brought about following reports by the Wall Street Journal last year alleging sexual harassment and other instances of misconduct had gone on for years within the FDIC and were ignored by senior leaders.
The report even went as far as stating that in some cases, Gruenberg had been personally involved in decisions that neglected to punish misconduct.
These findings are expected to revive pressure on the FDIC chief, who continues to face calls from Republicans to step down in light of the WSJ reports.
President Joe Biden commissioned Gruenberg in 2022, meaning his departure would jeopardize the administration's attempts to implement stricter financial rules, including a pending regulatory proposal on bank capital requirements that has prompted much backlash from Republicans and industry representatives.
Should Gruenberg be removed or step down himself, agency regulations require that FDIC Vice Chair and Republican Travis Hill take over, evenly splitting the agency's board between Republicans and Democrats.
