Hearing targets FDIC following report on misconduct

FDIC Chairman Martin Gruenberg accepted responsibility for reports of misconduct at his agency during a House Financial Services Committee hearing on regulatory oversight.

Gruenberg Testimony: Gruenberg, who faced questions on the report from Republican and Democratic members of the committee, said he is committed to addressing issues laid out in an independent review of the FDIC workplace culture. The FDIC board authorized the review following media reports of misconduct at the agency.

Committee Response: During the hearing, committee Chairman Patrick McHenry (R-N.C.) repeated his call for Gruenberg to resign, while Ranking Member Maxine Waters (D-Calif.) said the agency head is obligated to make sweeping changes.

Report Details: Conducted by Cleary Gottlieb and overseen by a special committee of the FDIC board of directors, the independent review found the FDIC has failed to provide a workplace safe from misconduct and that management’s responses have been insufficient.