Culture breakdown led to lapses at FDIC during bank failures, causing concerns about contagion
FDIC Chair Martin Gruenberg faces calls for resignation due to sexual harassment and discrimination allegations
Gruenberg's leadership created a bullying environment that left underlings reluctant to bring him bad information
Investigation found widespread harassment and discrimination at FDIC, with complaints ignored and offenders going unpunished
Republican and Democratic members of Congress have called for Gruenberg's resignation due to his role in events and financial-regulation agenda
An investigation by law firm Cleary Gottlieb found an agency culture of widespread sexual harassment and discrimination at the Federal Deposit Insurance Corporation (FDIC), where complaints were ignored and offenders went unpunished. The findings have put pressure on Martin Gruenberg, who has been the chair of the FDIC since 2005, with some calling for his resignation due to his role in creating a bullying environment that left underlings reluctant to bring him bad information. This culture breakdown led to lapses at the FDIC last spring when three regional banks failed and the agency was slow to seize them, causing concerns about a potential contagion. Republican and Democratic members of Congress have called for Gruenberg's resignation due to his role in these events and his financial-regulation agenda that includes forcing banks to hold more capital, reining in bonuses, and intensifying merger reviews. If he were to step down, the FDIC would be paralyzed with a split board between Democratic and Republican members.
Despite the calls for his resignation, Gruenberg has resisted and continues to lead the agency. However, during a House committee hearing, Representative Ayanna S. Pressley expressed her lack of confidence in his ability to continue leading in this role due to past behavior towards employees. The investigation also revealed that Gruenberg had berated employees and created an environment where people were afraid to communicate with him.
Gruenberg's tenure at the FDIC, which spans over 10 out of the last 13 years, is crucial for implementing a rule proposed by the FDDIC along with other federal bank regulators to tighten and expand oversight of large lenders. The rule has faced opposition from big banks and if Gruenberg steps down, it is unlikely to have enough votes from FDIC board members to become final.
The toxic work environment at the FDIC was first brought to light by an investigation conducted by Cleary Gottlieb Steen & Hamilton. The report found that men routinely harassed women sexually and seldom faced consequences for their actions. Despite this information, President Biden did not heed advice to fire Gruenberg.
An investigation by law firm Cleary Gottlieb found sexual harassment, bullying, and discrimination at the FDIC where complaints were ignored and offenders went unpunished.
Gruenberg’s temper is being tied to lapses at the FDIC last spring when three regional banks failed and the agency was slow to seize them.
Republican members of Congress and at least one Democrat have called on Gruenberg to resign.
Accuracy
Gruenberg's temper is being tied to lapses at the FDIC last spring when three regional banks failed and the agency was slow to seize them.
An independent investigation conducted by the law firm Cleary Gottlieb Steen & Hamilton established that Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, presided over a toxic work environment in which men routinely harassed women sexually and seldom got punished for it.
President Joe Biden did not heed advice to fire Martin Gruenberg despite an independent investigation establishing a toxic work environment under his leadership.
Accuracy
Republicans failed to effectively challenge Martin Gruenberg during a hearing.
Deception
(30%)
The article contains selective reporting and emotional manipulation. The author expresses his opinion that the Republican-led hearing was a failure and that Biden should still fire Gruenberg despite him holding up well during the hearing. The author also uses emotional language such as 'angry times', 'penitent', 'wrongdoer appears contrite' to manipulate the reader's emotions. Additionally, the article selectively reports on certain parts of the hearing that support the author's opinion and ignores other parts that contradict it.
Republicans were at this hearing too, and they were angry.
The way Republican Chair Patrick McHenry addressed the anger issue nicely demonstrated the absurdity of House hearings these days.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(80%)
The author expresses a clear bias against the Republican Party and their handling of the hearing regarding Martin Gruenberg. The author uses language that depicts Republicans as incompetent and lacking evidence in their questioning of Gruenberg.
But Republicans weren’t Biden’s only problem. Democrats were at this hearing too, and they were angry.
Republicans were at this hearing too, and they were angry.
The way Republican Chair Patrick McHenry addressed the anger issue nicely demonstrated the absurdity of House hearings these days.
Martin Gruenberg is the chair of the Federal Deposit Insurance Corporation (FDIC)
There have been reports of a culture of widespread sexual harassment and discrimination at the FDIC
Representative Ayanna S. Pressley called for Martin Gruenberg to resign during a House committee hearing
Martin Gruenberg has run the FDIC for 10 out of the last 13 years
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The author uses inflammatory rhetoric by quoting Representative Ayanna S. Pressley saying 'I am so tired of white men failing up.' This is an appeal to emotion and a form of ad hominem fallacy.
