A Double Standard For The Boss

FDIC Chair Martin J. Gruenberg refuses to step down, despite an independent investigation that found a toxic culture at the FDIC and blamed him for personally abusive behavior.

Deeply apologetic!

In one of his first steps in office, President Joe Biden told White House staff, “If I ever hear you treat another colleague with disrespect, talk down to someone, I promise I will fire you on the spot.”

Predictably, Biden has been silent as a key appointment, Martin J. Gruenberg, chair of the Federal Deposit Insurance Corp. (FDIC), is on the hot seat for overseeing a workplace rife with misogyny and sexual harassment.

An independent report says Greunberg who was sworn in as chair on Jan. 5, 2023, also has personally demonstrated abusive behavior toward subordinates.

Nevertheless, Gruenberg refuses to resign.

Instead, at a hearing of the House Financial Services Committee Wednesday, Gruenberg apologized and said it was his “top priority” to improve the toxic culture at FDIC, which employs about 6,000 workers. He also apologized for his own “failures as chairman, both in failing to recognize how my temperament in meetings impacted others and for not having identified deeper cultural issues at the FDIC.”

Gruenberg said the FDIC will form an independent “Office of Professional Conduct” to insure: more support and resources to victims, a better process to investigate complaints, and improved accountability for violators. He said four people have been “separated” for misconduct so far this year.

Women’s groups, who once championed the “MeToo” movement, also are silent, except for the right-leaning Independent Women’s Forum, which called for a leadership change.

Whether Gruenberg’s assurances are enough to avoid the chopping block remains to be seen. The Wall Street Journal says it is unlikely that he will be fired because that would leave a Republican in charge of the FDIC.

Politics As Usual

Democrats on the House Financial Services Committee hearing Wednesday were much more forgiving of Gruenberg’s leadership than Republicans.