Investigations into the ongoing scandals at the Federal Deposit Insurance Corporation (FDIC) may be coming to a head. On Tuesday, law firm Cleary Gottlieb Steen & Hamilton released a report detailing the results of their investigation into harassment and hostile work environments at the FDIC.

The report released Tuesday that chronicled yearslong harassment and abuse of employees at the FDIC is kicking off a new round of questions about the future of agency head Martin Gruenberg — with the fate of Biden-era regulators’ banking agenda hanging in the balance.

The independent inquiry confirmed a workplace culture rife with pervasive sexual misconduct, discrimination and retaliation. The report by law firm Cleary Gottlieb Steen & Hamilton didn’t call for Gruenberg’s departure and said he wasn’t a root cause of the behavior. But the investigators pointedly questioned whether he had the “moral authority” to enact needed reforms at the agency.

The report also detailed bad behavior by Gruenberg himself, detailing incidents as recently as May 2023, in which he lost his temper and berated staff in a “demeaning and inappropriate manner.”

Gruenberg's status and "moral authority" could be important, as the FDIC's Board of Directors consists of five members, three of whom are Democrats, and the Democratic Party is in the process of trying to move forward on changing capital requirements for banks that the Republican members oppose. An FDIC hamstrung by scandal may find it difficult to move ahead with any agenda at all in the face of Republican opposition.

Republicans, who along with the banking industry oppose much of his agenda, said the report underscored their calls in recent months for Gruenberg to step down. The GOP lawmakers overseeing financial policy in Congress — Rep. Patrick McHenry and Sen. Tim Scott — were among those leading the charge to oust Gruenberg.

— But there are also signs some of Gruenberg’s support could be cracking among Democrats. Rep. Bill Foster, a senior member of the House Financial Services Committee, became the first Democrat to call for Gruenberg to step down. It’s unclear if more will follow.

It's uncertain what, if anything, will happen before this fall's elections, and the makeup of Congress after that election will doubtless have an impact on all this. What is certain is this: If any of these allegations are true, there should be no need for Gruenberg to resign; he should be dismissed forthwith. These people should be reminded, every day and twice on Sunday, that they serve the taxpayers, not the other way around, and behavior like that alleged in this case should not be tolerated.

Previously on RedState: FDIC Once More in the Spotlight: Another Investigation Opens Into Leadership Misconduct 

Pay Raise Fight at Consumer Financial Protection Bureau: Big Raises for Execs, Bupkis for Workers

Support among what mainstream Democrats remain in Congress aside, Gruenberg can, of course, count on the support of congressional progressives, which in itself says a lot.

Progressive allies so far are standing by Gruenberg. Senate Banking Chair Sherrod Brown (D-Ohio) said he “must accept responsibility and must immediately work to make fundamental changes to the agency and its culture.”

Sen. Elizabeth Warren (D-Mass.) told reporters she thought Gruenberg would be capable of implementing the recommendations from the independent investigation and had been “approaching it with the right attitude.”

Senator Warren, who has been wrong on every single fiscal, monetary, and finance-sector issue since she was a grade-schooler, is already attempting to deflect attention away from Gruenberg, blaming the hostile work environment at FDIC on everyone back to the founding of the Republic.

“The problems with the FDIC date back to Democratic and Republican administrations going back many, many years,” Warren said. “Chairman Gruenberg has welcomed this investigation, has made it clear that he accepts the findings and has committed to make changes at the agency.”

Senator Warren, we should remember, was the architect of the disastrous Consumer Financial Protection Bureau.

See Related: Elizabeth Warren's CFPB Monster Is on the Chopping Block but Will John Roberts Save It?

In 2021, when he took office, President Joe Biden swore in staffers and cautioned them that he would fire anyone who was "disrespectful," which would certainly appear to be the case with Martin Gruenberg, but the White House has been silent on the matter to date, other than a brief statement from White House Press Secretary Karine Jean-Pierre that Gruenberg has "apologized" and will commit to making the changes recommended by the report from the law firm. Likely, the befuddled president doesn't remember making that statement, and it's likely no one in his current staff is anxious to remind him.

Investigations by members of Congress into the environment at FDIC will continue, and RedState will bring you updates as events warrant. Martin Gruenberg, along with other federal regulatory officials, will be testifying before Congress next week.