1 year ago
House Republicans on Friday said they were beginning an investigation into FDIC Chair Martin Gruenberg and allegations of workplace misconduct at the agency, ramping up political pressure on the top bank regulator.
GOP lawmakers led by House Financial Services Chair Patrick McHenry (R-N.C.) told Gruenberg in a letter they will use the panel's "full arsenal" of oversight and investigative tools, including compulsory measures, "to ensure that our banking system remains safe and sound.”
"Chairman Gruenberg, the viability of your leadership is in question," they said.
The announcement followed Wall Street Journal reports that described a long-running toxic work environment at the FDIC and said Gruenberg and other agency leaders did little to address the behavior.
The House Republicans launching the investigation, including Reps. Bill Huizenga of Michigan and Andy Barr of Kentucky, told Gruenberg they were concerned that the FDIC under his leadership lacks the ability to address the problems revealed in the stories.
“Our concern is underscored by your nearly 20-year tenure in all aspects of leadership and management at the FDIC, including serving twice as chairman,” they said. “It has failed to instill the confidence the public needs to know their banking system is and will be safe and secure in the future.”
The FDIC did not immediately respond to a request for comment. Gruenberg told lawmakers at oversight hearings this week that he was concerned by the initial WSJ revelations. The FDIC is launching its own review.
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