PoliticsWednesday 05.15.24

“Harvey Weinstein of the FDIC”: Rep. Luetkemeyer hits Martin Gruenberg for bank failures and sexual misconduct report.

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Rep. Blaine Luetkemeyer on Wednesday grilled Federal Deposit Insurance Corporation Chair Martin Gruenberg — who he compared to Harvey Weinstein — for bank failures and a recent report that detailed rampant sexual harassment and discrimination at his agency.

The Missouri Republican criticized the FDIC for, in his view, weak management and poor regulations, citing the failures of three banks last year.

“You knew about it for a year, did nothing, and in doing that you endangered not only the viability of those banks, but the viability of our system,” Luetkemeyer said.

Gruenberg has faced increasing scrutiny following a report, released last week by a law firm, that found that the FDIC’s “patriarchal” culture resulted in the underreporting of misconduct, as well as accounts of Gruenberg losing his temper on employees. The report found that senior officials for years sexually harassed, discriminated against, and abused mostly women and minority employees.

“Mr. Gruenberg, you have become the Michael Cohen and Harvey Weinstein of the FDIC. And you need to go,”  Luetkemeyer said. “If you have the decency, please step down. If not, I would urge the president of the United States to replace you ASAP.”

Recount Wire