In response to questioning from members of Congress about allegations of a toxic workplace at his agency, Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg said that the agency had hired a law firm to investigate, and he hoped the review would take under 90 days, The Wall Street Journal reported.

In its original article about the allegations, published on Nov. 13, the Journal detailed a culture of sexual harassment, forced drinking, texting and other behaviors that caused the departure of employees who claimed that the agency enabled and failed to punish bad behavior. The Journal’s investigation was based on interviews with FDIC employees as well as legal filings, union grievances, Equal Employment Opportunity complaints, emails, text messages and other internal documents. 

Many employees were reluctant to raise complaints because they feared retaliation and believed they wouldn’t be addressed, the Journal’s investigation found. When employees did file complaints, the FDIC in multiple instances moved the perpetrators to other offices rather than seeking their dismissal.

Gruenberg testified before the Senate Banking Committee on Nov. 14 and before the House Financial Services Committee on Nov. 15.

At the Senate hearing,  Sen. John Kennedy (R., La.). asked, “What the hell is going on at the FDIC?” and senators Elizabeth Warren (D-Mass.) and Jon Tester (D0-Mont.) also expressed concern about the allegations, the Journal reported. He told the Senate panel that the FDIC had “appropriate policies and procedures in place,” but that the challenge was for management to “instill the confidence in our employees to utilize those procedures and policies in a way that they can feel safe and secure.”

Gruenberg said he found the matter to be "deeply disturbing" and said the FDIC would employ all its resources to review internal practices "and how we can most effectively address it," Reuters reported. 

During the House hearing on Nov. 15, in response to questioning by Rep. Maxine Waters (D-Calif.), the ranking Democrat on the House committee, Gruenberg said that “[i]t’s quite clear that there have been FDIC employees who experienced horrendous treatment." He also said,"This is a top priority for the FDIC now.”

Waters also asked regulators from the Federal Reserve, Office of the Comptroller of the Currency and National Credit Union Administration to provide written plans in the next 15 days describing how the agencies would review their sexual harassment policies and procedures. All agreed.

Earlier on Nov. 15, FDIC Vice Chairman Travis Hill and Director Jonathan McKernan called for the entire board to oversee an investigation into allegations of harassment and discrimination at the agency. “The conduct reported by The Wall Street Journal earlier this week has no place at this agency or anywhere in the workforce and should not be tolerated,” they said in a joint statement.

The FDIC announced on Nov. 13 that it had hired the law firm BakerHostetler to conduct a “top-to-bottom assessment” of alleged harassment and discrimination at the agency, the Journal reported. Hill told the Journal that the FDIC’s audit committee, which he chairs, plans to review the investigation and to request monthly updates from the firm.