Hickory Sun

The House Financial Services Committee, under the leadership of Chairman Patrick McHenry (NC-10), convened a hearing to scrutinize the conduct of Biden's prudential banking regulators. The Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg was held accountable by Republicans following the release of an independent report by law firm Cleary Gottlieb, which confirmed allegations of widespread misconduct and a toxic workplace culture at the agency during his tenure. The committee also examined regulators' Basel III Endgame proposal among other partisan regulatory initiatives.

In his opening remarks, Chairman McHenry stated, “We are here to conduct oversight of our prudential regulators. There’s plenty to discuss. Each of you has put forward proposals that require robust debate and explanation."

He directed his comments towards Mr. Gruenberg, stating, "You have failed your employees, your agency, and the American people. The fact that you have yet to resign proves you take no responsibility for your actions. And let me be clear, showing up today is not an act of courage, it’s an act of hubris."

McHenry referred to a report revealing disturbing behavior at the FDIC including Gruenberg's verbally abusive behavior. He emphasized that this issue transcends partisanship and necessitates deep institutional changes at the FDIC - changes he believes Gruenberg is not equipped to lead.

McHenry quoted President Biden saying, ‘I’m not joking when I say this: If you’re ever working with me and I hear you treat another colleague with disrespect, talk down to someone, I promise you I will fire you on the spot.’ He questioned if the behavior outlined in the report doesn't warrant dismissal according to these standards.

The chairman also addressed potential attempts by Democrats to shift blame onto Republican FDIC Chairs by highlighting that Gruenberg led the agency for 10 out of the last 13 years.

Chairman McHenry concluded his remarks by urging his Democratic colleagues to maintain consistency when judging the behavior of regulators. He also expressed concern over the Biden administration's banking regulators pursuing partisan agendas rather than policies that support the economy, financial system, and American families.