U.S. Treasury Secretary Janet Yellen has strongly condemned the workplace abuses uncovered in a report regarding the U.S. Federal Deposit Insurance Corporation (FDIC). She emphasized that such behaviors were entirely unacceptable and did not align with the core values of the Biden administration.
Yellen refrained from directly addressing whether FDIC Chair Martin Gruenberg should resign but made it clear that the reported conduct at the FDIC was reprehensible and not in line with the administration’s principles.
The report, conducted by law firm Cleary Gottlieb in response to a Wall Street Journal investigation, revealed distressing accounts from over 500 individuals.
It painted a disturbing picture of a workplace environment within the FDIC characterized by widespread sexual harassment, racial discrimination, and bullying across all levels of the organization.
The report highlighted a culture of tolerance toward such misconduct by senior leaders, with complaints often resulting in retaliation against the complainants.
The release of the report reignited calls for the removal of FDIC Chair Martin Gruenberg, who has held a prominent position within the agency for nearly two decades.
Representative Patrick McHenry, the Republican chair of the House Financial Services Committee, was among those demanding Gruenberg’s resignation, citing the urgent need for new leadership in light of the report’s findings.
The findings of the Cleary Gottlieb report have brought renewed attention to the importance of accountability and fostering respectful workplaces within government agencies.
Yellen’s remarks underscored the administration’s commitment to addressing workplace culture issues and ensuring that all employees are treated with dignity and respect.
