The head of the U.S. Federal Deposit Insurance Corporation (FDIC) is facing scrutiny following reports of widespread misconduct within his agency. Martin Gruenberg, who has served as the regulator's acting leader three times since 2005 and is currently in his second fixed term, is set to face tough questioning in Congress. Accusations of sexist behavior by FDIC employees have recently caused a significant stir.

"What the hell is going on at the FDIC?" questioned Republican Senator John Kennedy from Louisiana during a hearing. Prior to this, the Wall Street Journal had reported that there were regular incidents of sexual harassment and discrimination against women within the agency. The "toxic work environment" has been causing many female employees to leave the FDIC for years.

Gruenberg announced a comprehensive investigation by external lawyers. He stated that workplace problems were not known to him before the media reports. However, FDIC employees report that Gruenberg has been involved in decisions when allegations were made against executives and often did not take strong action.

Harrel Pettway, then the second in command in the FDIC legal department, is said to have left an angry and offensive voicemail for a female employee in 2019. The agency was led by Gruenberg's predecessor Jelena McWilliams at that time, and as part of a settlement, the agency paid $100,000 to the affected woman. However, Pettway retained his job and rose to become the top legal advisor at the FDIC under Gruenberg.

Gruenberg, who often appears drowsy during congressional appearances, is also prone to outbursts of anger according to some employees. During a hearing in the House of Representatives on Wednesday, Gruenberg initially, under oath, denied that there had ever been investigations into alleged misconduct against him. He later corrected his statement, acknowledging that in 2008, when he was the vice-chairman of the FDIC, he was questioned in response to a complaint from an employee.

Gruenberg is said to have lost his temper with the official because she had not coordinated the schedule for a management conference with him. According to the agency head, the investigation, to his knowledge, did not result in any findings. However, this did little to alleviate the concerns of many members of Congress regarding the leadership culture and work environment within the FDIC.