Representative Waters supports FDIC Chair following sexual harassment allegations

The head Democrat on the House Financial Services Committee criticized a third-party investigation of sexual harassment and misconduct at the Federal Deposit Insurance Corp. (FDIC), The Hill reported.

Rep. Maxine Waters, D-Calif., criticized the focus of the investigation on the current Democrat leader of the FDIC and not his GOP predecessors.

She acknowledged cultural deficiencies highlighted in the report by law firm Cleary Gottlieb Steen & Hamilton but defended FDIC Chairman Martin Gruenberg, even as he faces bipartisan pressure to resign.

In her statement, Waters mentioned that the report was focused solely on the Democratic chair and ignored the activities of the two previous Republican Chairs.

She found the report troubling and emphasized the need for the FDIC to change its policies and programs to improve its workplace culture, particularly in the area of anti-sexual harassment.

The FDIC disputed the idea that the report unfairly targeted leadership, with Jonathan McKernan stating that workplace culture issues have been long-standing and not limited to the current Chair.

Sexual harassment and a culture of intimidation at the FDIC have been documented for years, with a report by the agency’s inspector general in 2020 highlighting the lack of an acceptable sexual harassment prevention program.