FDIC Cancels Board Meeting Amid Toxic Workplace Allegations

Chairman Martin Gruenberg faces scrutiny as a congressional investigation is set to probe allegations of sexual misconduct and harassment within the agency.

The Federal Deposit Insurance Corp. (FDIC) canceled a public meeting of its board scheduled for Thursday, following allegations of a toxic workplace environment and sexual misconduct.
The allegations, which were revealed in a Wall Street Journal investigation, have led to many female bank examiners leaving the FDIC over the years.
FDIC Chairman Martin Gruenberg, who has been at the agency since 2005, said he was 'deeply troubled' by the accounts and was previously unaware of the allegations.
The FDIC board was scheduled to finalize a plan to reimburse a federal deposit insurance fund for billions in losses tied to the collapse of two large banks in March.
The Republican chairman of the House Financial Services Committee, Rep. Patrick McHenry, said the panel would conduct a 'rigorous investigation' into the allegations.