In a second day of intense questioning, Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg appeared before the Senate Banking Committee on Thursday to address the agency's toxic workplace culture, following the release of a damning report last week. The hearing, which was meant to discuss oversight of financial regulators, quickly shifted focus to the FDIC's failures in preventing instances of harassment and discrimination against its employees.

The independent review of the FDIC's workplace culture, conducted by law firm Cleary Gottlieb Steen & Hamilton, revealed a deeply troubling environment plagued by "hostile, abusive, unprofessional, or inappropriate conduct." The report documented over 500 complaints from employees, which included incidents of stalking, harassment, homophobia, and other employment regulation violations.

Numerous troubling accounts were highlighted during the hearing, including a woman who endured stalking and continued harassment despite reporting the behavior, a field office supervisor making derogatory comments about gay men, and a female field examiner being sent explicit photos by a senior FDIC examiner.

This pivotal report has ignited a bipartisan outcry, with Republicans now joining Democrats in their calls for Chairman Gruenberg's resignation. Republican lawmakers, including Senator Tim Scott, expressed their loss of confidence in Gruenberg's leadership and urged him to step down. At the hearing, Senator Scott outlined stories of extreme harassment and stalking endured by female FDIC workers, which were dismissed by supervisors, as noted in the report.

While Gruenberg expressed his deep regret and took full responsibility for the instances of sexual harassment, discrimination, and misconduct, Republicans insist that a change in leadership is necessary to facilitate a cultural transformation within the agency.

However, Democratic Senators have stopped short of demanding Gruenberg's resignation. Instead, they are calling on him to take immediate and decisive action to restore confidence and address the systemic issues outlined in the report. Committee Chair Senator Sherrod Brown emphasized that Gruenberg must prove his ability to lead and rebuild trust within the FDIC.

In response to these developments, Senator John Kennedy announced his plans to introduce a bill that would extend the statute of limitations for FDIC employees to file lawsuits regarding the abuses they experienced while working for the agency.

The widespread dissatisfaction with Gruenberg's handling of the workplace culture crisis is a bipartisan concern that transcends party lines. Critics argue that his credibility has been deeply undermined, casting doubt on his ability to effectively clean up the FDIC while defending himself in court.

Similar sentiments were expressed during Wednesday's hearing in front of the House Financial Services Committee, where both Republican and Democratic representatives called for Gruenberg's resignation or substantial reforms to be implemented.

As calls for change grow louder, the spotlight remains on Gruenberg as he faces mounting pressure to take swift and decisive action to address the systemic issues that have plagued the FDIC's workplace culture for over a decade.