WASHINGTON–During a Senate hearing here, NCUA found itself pulled into debates around international geopolitics as well as the scandal surrounding the alleged toxic and misogynistic work culture at the FDIC.
As CUToday.info reported, the banking regulator has been the subject of an extensive story in the Wall Street Journal that found numerous women, many of whom have left the FDIC, sharing stories of male workers acting abusively against women, including supervisors inviting female employees to strip clubs, another supervisor requesting sex with an employee, and employees being urged to drink whiskey while working.
That, in turn, led to a contentious hearing in the Senate, with one senator asking, “What the hell is going on at the FDIC?”
One day later, the House held a similar hearing on oversight of financial institutions and it, too, veered into questions about what is being alleged at the FDIC.
FDIC Chairman Martin Gruenberg faced similar grilling from House members as he did in the Senate, and he provided similar responses that he is “deeply troubled” by the allegations and the FDIC has retained an outside firm to investigate.
“It's quite clear there have been FDIC employees who have experienced horrendous treatment and it needs to be addressed,” Gruenberg said.
A Two-Week Deadline
During the hearing, House Committee on Financial Services Ranking Member Maxine Waters (D-CA) asked Gruenberg to commit to developing a written plan for addressing the issue and a report on what it being done to create a “safe workspace” within 15 days.
Gruenberg said he and the FDIC would provide that report.
Waters then said she would be “naïve to think these cases are unique” to the FCIC, and she asked two others on hand to testify before the committee, including NCUA Chairman Todd Harper, to also commit to providing such a report within 15 days.
“In recent years the NCUA has worked to strengthen its anti-harassment policies, including for sexual harassment,” Harper said, before agreeing to meet the deadline for such a report.
Questions on Bank Acquisitions
Separately, Harper also found himself on the receiving end of a question related to credit union acquisitions of banks from Rep. French Hill (R-AR).
“Sixteen banks were bought by credit unions in the last year. That's of interest to both sides of the dais up here,” said Hill. “Are these taxpaying companies that are now converted to non-taxpaying cooperatives? Do they convert their deposits to shares. I don't think there's enough information on this committee. Could you send me a memo on that?”
Harper said NCUA would provide such a report to the committee.
China Sanctions & Credit Unions
Separately, Rep. Blaine Luetkemeyer (R-MO) had questions for banking regulators who were on hand to testify over what plans they had in place should China invade Taiwan and the United States respond with sanctions, which would strongly affect the financial services industry.
In response to a question from Luetkemeyer, Harper said NCUA has not been involved in any discussions with its fellow regulators related to Taiwan and economic and financial sanctions.
“But we would be concerned about any material risks to credit unions,” said Harper.
The NCUA chairman, meanwhile, delivered prepared remarks to the House committee that were the same as those delivered one day earlier to the Senate, as CUToday.info reported here.
Board Meeting, Budget Hearing
Separately, the NCUA board will hold its November meeting today, with the board set to issue a final rule related to charitable donation accounts (CDAs). That meeting begins at 10 a.m. E.T.
At 2 p.m., the agency will host its public budget briefing on its 2024-25 budget proposal. As CUToday.info has reported, the agency has proposed a $394.5 million budget for 2024, an increase of 9.5% from 2023. Additionally, the NCUA proposed a budget of $433.6 million for 2025, an increase of 9.9% from the 2024 proposed budget.
CUToday.info will have coverage of both meetings.
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