The Senate Banking Committee was holding a hearing to oversee financial regulators, but things took an unexpected turn when Louisiana Senator John Kennedy questioned Federal Deposit Insurance Corporation Chairman Martin Gruenberg. The reason for Kennedy’s focus was a recent report detailing widespread misconduct within the agency’s workplace culture.
Kennedy displayed his signature wit, using sardonic humor to expose Gruenberg’s shortcomings. He asked if Gruenberg believed he was the right person to clean up the FDIC, to which the chairman replied in the affirmative. Kennedy then compared Gruenberg’s belief to imagining Elvis is still alive or believing in Bigfoot.
Kennedy pointed out that Gruenberg has been the chairman of the FDIC for 10 of the last 13 years and has been there for almost 20 years. He highlighted the fact that the agency’s problems have been ongoing for decades, making it difficult to believe that Gruenberg is the right person to address them.
The report by law firm Cleary Gottlieb Steen & Hamilton revealed a disturbing workplace environment at the FDIC. Over 500 employee complaints were cited, including stalking, harassment, homophobia, and other violations. The report described a “misogynistic,” “patriarchal,” “insular,” and “outdated” culture. Kennedy expressed incredulity at Gruenberg’s assertion that he is the best person to lead the cleanup efforts.
.@SenJohnKennedy: “You believe your the person to clean up the FDIC?”
FDIC Chair Martin Gruenberg: “I do, Senator.”
Kennedy: “Do you also believe that Elvis is alive?”
Gruenberg: “Not to my knowledge.”
Kennedy: “Do you also believe in Big Foot? Have you read this report?” pic.twitter.com/ibNV1qg7gY
— CSPAN (@cspan) May 16, 2024
Kennedy then proceeded to read out some of the more graphic and disturbing complaints from employees, citing examples of sexual harassment and racist behavior from supervisors. He warned Gruenberg that if he continued in his role, he would be too preoccupied defending himself in court instead of effectively addressing the agency’s problems.
Kennedy also revealed that the report had some critical things to say about Gruenberg himself. The report stated that his “long tenure and reputation for losing [his] temper and bullying people ‘presents unique challenges’” in changing the agency. Kennedy sarcastically compared Gruenberg fixing the agency to asking Alec Baldwin to conduct a course in gun safety.
Kennedy also highlighted the fact that even Gruenberg’s senior leaders felt disrespected, disparaged, and unfairly treated by him. The senator openly questioned whether Gruenberg had even read the report, to which the chairman confirmed he had. Kennedy expressed his shock and embarrassment at reading the horrifying allegations of sexual harassment and discrimination in the report.
Kennedy requested that Gruenberg apologize to the female employees sitting behind him, which the chairman hesitantly did. The senator ended his scathing rebuke by calling for Gruenberg’s resignation.
However, the FDIC’s workplace misconduct scandal is not a new development. There have been previous reports of a potential rape at an FDIC-owned hotel in 2017 and allegations of partying using agency facilities, according to police records and conservative watchdog groups. This scandal has caught the attention of leading House Republicans as well, who have questioned why Biden has not fired Gruenberg in light of the report’s findings.
The letter sent by House Oversight Committee Chairman James Comer of Kentucky, Rep. Lisa McClain of Michigan, and Rep. Andy Biggs of Arizona, highlighted Biden’s previous statements emphasizing the importance of workplace civility and his promise to fire anyone who treats their colleagues with disrespect. Given the horrific nature of the reported misconduct and the current administration’s emphasis on using appropriate language, the lack of accountability for Gruenberg raises concerns about the seriousness with which the Biden administration is taking these failures.
Kennedy’s humorous yet scathing questioning not only exposed Gruenberg’s inadequacies but also shed light on the blatant double standard at play in the Biden administration. The lack of consequences for Gruenberg’s actions, and the disturbing findings in the Cleary Gottlieb report, should not go unpunished. The viral dissemination of Kennedy’s interrogation helps bring attention to this issue and hold those in positions of power accountable for their actions.