Watch Kennedy’s full exchange with Gruenberg here.

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today urged Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg to step down after reports documenting the FDIC has tolerated a toxic work environment under his tenure.

Kennedy questioned Gruenberg at a Senate Banking Committee Hearing on Nov. 14, 2023 about reports indicating that the chairman has failed to address sexual harassment and other inappropriate behavior at the FDIC. 

“New allegations surfaced this week suggesting that the FDIC is tolerating an inappropriate and toxic workplace atmosphere under your leadership. Given the vital role the FDIC plays in upholding America’s financial and economic systems, it is imperative that its leader be one with irreproachable demeanor and character. These troubling allegations call into question your ability to continue leading and present a troubling picture of your tenure,” Kennedy wrote.

“Further, in your testimony at the House Financial Services Committee on Wednesday, November 15, 2023, you stated that you have not been investigated for inappropriate behavior.  You later told the panel that you were, in fact, investigated for inappropriate behavior in 2008,” the senator continued.

“According to your statement at the Senate Banking Committee on Tuesday, November 14, 2023, you have not personally acted to rectify these allegations throughout your time as chair or acting chair at the FDIC in order to make the FDIC an appropriate workplace for all individuals. As a result of these troubling reports and your apparent unwillingness to address them, I call for your resignation so that a new chair can restore the professional culture at the FDIC that the American people expect from its institutions,” Kennedy concluded. 

The senator also asked Gruenberg to answer questions about what, if any, actions he has taken to improve the FDIC’s work environment during each of his tenures as chair of the agency. 

The full letter is available here.