Jefferson Reporter

U.S. Senator Katie Britt (R-Ala.) recently participated in a Banking, Housing, and Urban Affairs Committee oversight hearing of prudential regulators. The hearing included testimony from Federal Reserve Vice Chair for Supervision Michael Barr, Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu.

The hearing followed an independent investigatory report released last week that detailed a toxic workplace culture at the FDIC. Senator Britt expressed her concern over these findings, which included hundreds of allegations of discrimination, unsolicited sexual advances, assault, and reports of women facing obstacles to promotion after having children. She underscored that the FDIC was established to maintain public confidence in the nation’s financial system.

Mr. Hsu holds an ex officio seat on the FDIC board of directors as the Acting Comptroller of the Currency. When asked by Senator Britt three times whether he believed an agency described by the report as “misogynistic,” “abusive,” and “toxic” instills “trust and confidence in the American people,” Mr. Hsu did not provide a simple “yes” or “no” answer. Similarly, Vice Chair Barr also avoided answering with a straightforward "yes" or "no" when asked twice by Senator Britt.

Senator Britt highlighted that Chair Gruenberg has held a significant leadership position at the FDIC – either on the board of directors, as Vice Chair, as acting Chair, or as Chair – for nearly 19 years. She argued that he has failed to ensure an appropriate work environment or healthy culture during his lengthy tenure.

Senator Britt concluded her remarks by calling for “wholesale change” at the FDIC.“You said this is about people, this is about employees. In order to restore confidence, literally it starts at the top,” Senator Britt told Chair Gruenberg. “We need a change. The American people deserve a change. The FDIC was actually created to give them confidence in the financial system, and we need a wholesale change starting at the top.”

A transcript of Senator Britt's line of questioning can be found here.