Martin Gruenberg has announced he will resign once a successor is confirmed, after reports of a toxic workplace culture at the FDIC.
Victoria Guida is an economics reporter covering the Federal Reserve, the Treasury Department and the forces driving economic policy. Her column, CAPITAL LETTER, demystifies the policies, people and institutions that shape the financial system and the broader economy.
“Although most did not want to — or feel comfortable — characterizing the behavior , and others reported on their experiences with the chairman only after being granted anonymity, a number noted that Gruenberg, on these occasions, had acted ‘unprofessionally,’ ‘unreasonably,’ and/or ‘inappropriately,’” the law firm said in its report. “Generally speaking, these incidents arose when people were delivering bad news to Chairman Gruenberg or in discussing matters about which he disagreed.
The White House should consider who might actually be good at managing the agency as it vets replacements for Gruenberg, who is stepping down in the wake of reports of problematic behavior that extends far beyond his own. The administration owes that to the FDIC’s employees, and it should feel similar obligations to other federal agencies, especially given President Joe Biden’s pledge to fire anyone “on the spot” for treating people badly.
White House Press Secretary Karine Jean-Pierre has said the president would nominate someone to replace Gruenberg who reflects “the values of decency and integrity.” Multiple government officials noted that it can be hard for political appointees to make a big impact on workplace culture when they’re going to be there for only a few years. But it’s also harder to achieve their political goals without some attempt to build trust and a healthy work environment, they said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FDIC-Insured Republic First Bank FailsSee multiple perspectives from Investopedia, Fox Business, and CBS News (Online) at AllSides.com.
Read more »
FDIC-insured bank seized by regulators is first US bank failure of 2024The first bank failure of 2024 happened last week when Republic First Bank, a financial institution based out of Philadelphia, was seized and closed by federal regulators. The bank reportedly faced mounting financial difficulties due to a decrease in the number of deposits it received and its mortgage lending.
Read more »
`Patriarchal, insular': FDIC inquiry finds pervasive sexual harassmentThe response to allegations of misconduct has been “insufficient,” the report found, detailing incidents in which senior executives pursued romantic relationships with subordinates.
Read more »
FDIC workplace was toxic with harassment and bullying, report claims, citing 500 employee accountsFDIC Chair Martin Gruenberg is also a focus of the report, which claims he treated staff in a 'demeaning and inappropriate manner.'
Read more »
FDIC report outlines 'misogynistic,' 'patriarchal' 'good ol' boys' workplace cultureAn independent review of the Federal Deposit Insurance Corp.’s workplace culture describes an environment that fostered “hostile, abusive, unprofessional, or inappropriate conduct,” and questions whether the agency’s chairman is credible to lead the agency through a cultural transformation.
Read more »
FDIC report outlines 'misogynistic,' 'patriarchal' 'good ol' boys' workplace cultureAn independent review of the Federal Deposit Insurance Corp.’s workplace culture describes an environment that fostered “hostile, abusive, unprofessional, or inappropriate conduct,” and questions whether the agency’s chairman is credible to lead the agency through a cultural transformation.
Read more »