Democrats Demonstrate Left-Wing Banking Regulations Are More Important To Them Than Cleaning Up The Toxic FDIC

In Last Week’s Banking Committee Hearing, Democrat Senators Pointed To ‘Deeply Disturbing’ ‘Jaw-Dropping’ Behavior In Reports About Workplace Culture At The FDIC, But Not A Single One Called On The FDIC Chairman To Resign

“Democratic Senators did not call on the agency chairman to resign…” (“FDIC Chair Is Grilled On Capitol Hill After Report Outlines Agency’s Toxic Workplace Culture,” The Associated Press, 5/16/2024)

SEN. CATHERINE CORTEZ MASTO (D-NV): “This should be the last report we deal with on this particular issue and we are going to hold you accountable, the entire board, the entire management FDIC, you need to make changes and this is -- this is something that clearly has happened over years and decades unfortunately. But it’s time to make the change and we need to hold you accountable. From my perspective, I’m not going to let go. This has to change -- has to change.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 5/16/2024)

SEN. LAPHONZA BUTLER (D-CA): “The examples that have been provided in the appendix to the Gottlieb report are truly jaw-dropping. Women, people of color, the LGBTQ employees, among others have been harassed, have been abused all during their employment. You’ve heard from my colleagues that we’re expecting more from you and we expect that you will be doing the work and taking the steps to right the ship and to restore the credibility of the agency.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 5/16/2024)

SEN. RAPHAEL WARNOCK (D-GA): “Chair Gruenberg, when we spoke last week, I was clear with you that I find this report deeply disturbing regarding the workplace environment at the FDIC. The kind of harassment that employees have experienced there…. [I]t’s clearly a culture issue and it’s deep seated. Not only has this kind of workplace sexual harassment and racial discrimination not been discouraged. One could well argue when you consider the response that it’s been encouraged, which is they clearly concerning not only to me, but anybody who’s looking at this. From 2015 to 2023, of the 92 harassment complaints made through the FDIC’s anti-harassment program, not a single one resulted in removal, reductions in grade or pay, or any discipline more serious than a suspension. Of those 92, just two resulted in suspensions and two in letters of reprimand. So one could argue that this encourages abuse, this encourages harassment, which is a very serious issue. So the FDIC clearly needs a culture shift to be an effective regulator.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 5/16/2024)

SEN. MARK WARNER (D-VA): “Mr. Gruenberg, I’m not going to echo what all my colleagues have said. Behaviors gotta change, it needs to be a meaningful plan.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 5/16/2024)

The One Senate Democrat Who Eventually Called For Gruenberg To Be Replaced Days Later Still Didn’t Call On Him To Resign, Indicating That He Has No Problem With Gruenberg Continuing To Lead The FDIC

“Sherrod Brown, the Democratic chair of the Senate Banking Committee, says Marty Gruenberg shouldn't remain as chair of the FDIC. He doesn't call on Gruenberg to resign, but he wants Biden to nominate a new chair.” (The Wall Street Journal’s Nick Timiraos, @NickTimiraos, Twitter, 5/20/2024)

·       “Notably, the senator did not call on Gruenberg to resign. The FDIC chair directs staff work and sets priorities for regulation, and if Gruenberg were to depart, the agency would be led on an acting basis by its Republican vice chair, Travis Hill. The course of action laid out by the senator, however, would allow control of the agency to pass to another Democrat …” (“Senate Banking Chair Brown calls on Biden to replace embattled FDIC head,” Politico, 5/20/2024)

After Two Hearings On Capitol Hill, ‘Democrats’ Complaints With The Chair Himself Were Fairly Muted,’ They ‘Stopped Short Of Calling For His Resignation,’ ‘Politics Has Saved The Longtime Bank Regulator’

PUNCHBOWL NEWS: “Marty skates by: Embattled FDIC Chair Martin Gruenberg didn’t have too bad of a time before the Senate Banking Committee this morning. Republicans continued to call for Gruenberg to resign, but Democrats’ complaints with the chair himself were fairly muted.” (“SCOTUS Backs CFPB In Blow To Industry,” Punchbowl News, 5/16/2024)

“So far, politics has saved the longtime bank regulator — neither the White House nor any prominent Democrats have called for his ouster in the wake of a scathing report on a culture of harassment and retaliation inside the FDIC.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

“Only one Democrat — Rep. Bill Foster (D-Ill.) — has urged Gruenberg to resign. And Gruenberg appeared to survive Wednesday’s hearing without any additional Democrats calling for his ouster.” (Politico, 5/15/2024)

‘The White House And Progressive Democrats Want To Get Their Financial Regulatory Agenda Across The Finish Line’

“The White House and progressive Democrats want to get their financial regulatory agenda across the finish line. That’s already an uphill battle, and without Gruenberg, they likely couldn’t do it.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

·       “[T]hey stopped short of calling for his resignation.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

Far-Left Democrats In Congress Gave The Game Away: Sen. Warren Declared Gruenberg’s ‘Resignation Would Do Nothing To Improve The Toxic Culture At The FDIC, But It Would Give Republicans A Veto Over Bank Policy’

“Instead of calling for Gruenberg’s ouster, some of his defenders are questioning the motives of his detractors.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

·       “‘While there are serious issues at the FDIC, the Wall Street orchestrated attempt to remove the Chair is merely a way of blocking tighter rules on large banks,’ Matt Stoller, director of research at the progressive American Economic Liberties Project, said in a statement.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

SEN. ELIZABETH WARREN (D-MA): “Your resignation would do nothing to improve the toxic culture at the FDIC, but it would give Republicans a veto over bank policy.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 5/16/2024)

REP. MAXINE WATERS (D-CA): “I look forward to hearing from Chair Gruenberg, who has committed to making the necessary changes to turn the tide on the culture at the FDIC. Under the leadership of Chair Gruenberg, the FDIC has done a lot of important work …” (U.S. House of Representatives Financial Services Committee Hearing, 5/15/2024)

One Progressive Democrat Even Scolded Gruenberg For Jeopardizing ‘Critical Regulations Pending Finalization At Your Agency’

REP. AYANNA PRESSLEY (D-MA): “It is shameful that through your inadequate leadership at the helm of this agency that you have fueled calls for your resignation from the political opportunists across this aisle and jeopardize critical regulations pending finalization at your agency.” (U.S. House of Representatives Financial Services Committee Hearing, 5/15/2024)

Only Democrats’ Progressive Regulatory Priorities Are Saving Gruenberg: ‘Most Companies Would Oust A Leader In A Situation Like Gruenberg’s’

AXIOS: ‘FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO’ (Axios, 5/16/2024)

·       “In the business world, FDIC chair Martin Gruenberg would likely be forced out of his leadership role.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

“It’s possible the CEO of a public company could withstand the situation that Gruenberg is facing, but ‘it would be extremely difficult in this day and age,’ says Jonathan Macey, a professor at Yale Law School.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

·       “He says that in some instances where misconduct is isolated, it makes sense to keep leadership in place. But when there’s pervasive misconduct, it’s different. ‘A CEO is responsible for the corporate culture.’” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

“‘I rail all the time that there’s not enough accountability at companies,’ says Nancy Smith, an employment and civil rights lawyer. But most companies would oust a leader in a situation like Gruenberg’s, she says.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

“Whether or not his detractors are acting in bad faith ultimately is irrelevant, says Smith. No one disputes the investigation’s findings. There needs to be change at the FDIC for the sake of the people who work there, she says. It’s unlikely that an insider like Gruenberg could actually clean up the agency culture, as he said he would at Wednesday’s hearing. Real change would require a lot of people losing their jobs. ‘A lot of people need to be fired,’ says Smith.” (“FDIC’s Gruenberg Would Likely Get Fired If He Was A CEO,” Axios, 5/16/2024)

FLASHBACK: Biden Came Into Office Pledging, ‘If You’re Ever Working With Me And I Hear You Treat Another Colleague With Disrespect Or Talk Down To Someone, I Promise You, I Will Fire You On The Spot’

PRESIDENT JOE BIDEN: JANUARY 2021: “I’m not joking when I say this: If you’re ever working with me and I hear you treat another colleague with disrespect or talk down to someone, I promise you, I will fire you on the spot — on the spot. No ifs ands or buts…” (“Biden To Staff: ‘I Will Fire You On The Spot’ For ‘Disrespect’ To Others,” New York Post, 1/20/2021)

·       BIDEN: “Everybody is entitled to be treated with decency and dignity. That’s been missing in a big way the last four years…” (“Biden To Staff: ‘I Will Fire You On The Spot’ For ‘Disrespect’ To Others,” New York Post, 1/20/2021)

·       BIDEN: “We’re going to be judged whether or not we restored the integrity and competency this government I need your help badly.” (“Biden To Staff: ‘I Will Fire You On The Spot’ For ‘Disrespect’ To Others,” New York Post, 1/20/2021)

·       BIDEN: “We’re going to take responsibility. That’s what we do. That’s what you do.” (“Biden To Staff: ‘I Will Fire You On The Spot’ For ‘Disrespect’ To Others,” New York Post, 1/20/2021)

BIDEN: MARCH 2022: “Between half and three quarters of all women report that they have faced some form of sexual harassment in the workplace. And too often, they’re denied a voice and fair chance to do anything about it. Today we send a clear and strong message that we stand with you for safety, dignity, and for justice.” (Pres. Biden, Remarks, 3/03/2022)

·       BIDEN: “If a worker experiences sexual assault or harassment, it’s in the — it’s in the employer’s best interest to address it…” (Pres. Biden, Remarks, 3/03/2022)

BIDEN: MARCH 2024: “And I said — when I said why I was running — they asked me why I was running. I said, ‘For three reasons. One, to restore the soul of America.’ And I meant it. We can’t be a nation espousing a value set that’s contrary to everything we believe. Just decency.” (Pres. Biden, Remarks, 3/29/2024)