Beatty Calls Out Republican Double Standards in FDIC Oversight Hearing
WASHINGTON, DC – During today’s Financial Services Committee Hearing on oversight of the FDIC, Congresswoman Joyce Beatty (D-OH), member of the House Financial Services Committee, questioned Federal Deposit Insurance Corporation (FDIC) Special Review Committee Co-Chairs Michael Hsu and Jonathan McKernan.
Before questioning the witnesses, Congresswoman Beatty reminded the committee that Democratic members addressed former FDIC Director Martin Gruenberg’s failures in a previous hearing and applauded President Biden for swiftly searching for a qualified replacement with support from both Democrats and Republicans.
“Let me start by reminding my Republican colleagues that the hearing on Director Gruenberg was our last hearing where Democrats were very critical of him as well as Jelena McWilliams for failing to address the long span culture of abuse.”
“Republicans continue to put blame on Mr. Gruenberg. He has resigned and I applaud President Biden for putting a critical eye on identifying a person with the experience, background—and a person who has been tested and supported by Democrat and Republicans to be confirmed,” Beatty said.
Congresswoman Beatty drew a comparison between the allegations against the former FDIC Director and former President Trump, implying that Republican members should be similarly appalled by the actions of their last party leader.
“There's a lot of hypocrisy in my opinion, Mr. Chairman, of Republicans being outraged by sexual harassment and misconduct in this context but not in other contexts. [...] I don't see Republicans calling for the resignation or removal of your last party leader for the exact same conduct that Trump had. Hypocrisy.” , said Congresswoman Beatty.
Beatty then directed a line of questioning to her Republican colleagues reflecting the nature of questions they posed to witnesses. Rep. Huizenga (R-MI) had previously in the hearing prompted witnesses to indicate whether Director Gruenberg’s failed leadership created a fear of retaliation that would prevent them from being able to address the toxic culture within the organization.
“It's very interesting that you asked the witness—or you stated—that he was afraid of the former Director. So let me say to my Republican colleagues: why are you so afraid of Trump—if it's in alignment to say that he's afraid of someone that he had to work for, and Trump has done many of these same things?”, Beatty continued.
Beatty followed these statements by asking the witnesses if they “ever felt threatened or afraid [of the former Director]?”
Both witnesses responded that they did not feel threatened by FDIC Director Gruenberg.
Beatty then questioned the witnesses about diversity and inclusion at the FDIC.
“Staff diversity at this prudential regulatory agency, I believe, continues to lag. It’s clear that it's not just diversity, but it's also inclusion, and it must be improved within your agency—so not only women, but people of color. I think it's important when you talk about the culture that people come from, whether it's rural America, whether it's suburban, it's so it's not just race and gender. It's far more than that. Could you tell us what steps the FDIC is taking to do that, and especially at the GS-15 level?”, Beatty questioned.
Mr. Hsu stated that the actions steps as well as the recommendations laid out by the agency would provide a good starting point. Mr. McKernan described the organization’s programming as helpful to recruit and retain diversity.
Video of Beatty’s remarks are available here.
For inquiries, please contact Cassandra.Johnson@mail.house.gov or Hannah.Edwards@mail.house.gov.
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