“Marty Gruenberg should resign,” he added.

Sen. John Kennedy (R-La.), who also serves on the panel, sent Gruenberg a letter urging the same.

“As a result of these troubling reports and your apparent unwillingness to address them, I call for your resignation so a new chair can restore the professional culture at the FDIC that the American people expect,” Kennedy wrote.

By Thursday afternoon, some Democrats began to weigh in, though they stopped short of calling for Gruenberg’s resignation. Senate Banking Chair Sherrod Brown of Ohio called for the FDIC inspector general to “conduct an independent and thorough investigation into the workplace culture at the agency.”

“The reports are extremely concerning,” Brown said in a statement.

The Journal on Monday reported that the agency has been plagued for years by a culture of sexism and sexual harassment that has led female employees to quit. The newspaper late Wednesday published a story citing current and former FDIC officials that said Gruenberg and top deputies were involved in decisions over alleged sexism and racial discrimination in which the agency didn’t take a hard line. It also reported that Gruenberg is known for having an “explosive temper.”

The FDIC subsequently canceled an open meeting of its board of directors, saying members would instead submit their votes to finalize a new rule in written form. Shortly afterward, the board’s GOP members put out a statement saying the news articles undermined public confidence in the agency.

“This has been a difficult week for the FDIC,” Vice Chair Travis Hill and board member Jonathan McKernan said in the statement. “Restoring faith in the work environment at the FDIC will be challenging.”

The top Republican on the Senate Banking Committee, Tim Scott (R-S.C.), wrote in a statement that Gruenberg “has failed to lead and address employee concerns over the years.”

“As such, he should seriously consider if he possesses the leadership the FDIC requires at this moment to restore confidence in the agency,” he said.

Lawmakers had pressed Gruenberg on the allegations in oversight hearings on Tuesday and Wednesday.

Gruenberg said harassment and discrimination are “unacceptable” and told lawmakers that an independent firm would conduct a “top-to-bottom assessment” of the agency. He said he had been unaware of the allegations of workplace problems at the agency prior to the Journal’s reporting.

“It’s quite clear that we’ve had employees at the FDIC subjected to horrendous experiences that simply are unacceptable and can’t be tolerated,” the FDIC chief testified. “It’s really going to be incumbent upon the agency to take all actions necessary to come to grips with this and to address it effectively.”

In their statement, the FDIC’s GOP members said Gruenberg and the general counsel, who is also implicated in the reports, should recuse themselves fully from the independent review and that the board, rather than management, should direct the inquiry.

The White House on Thursday said it supports the probe.

“Any reports of sexual harassment and discrimination are unacceptable, and we support the FDIC’s decision to conduct a thorough investigation,” said an official who asked not to be named. “I would refer you to the FDIC for anything further.”

Rep. Bill Foster (D-Ill.) similarly said these are “serious allegations that must be investigated, and those responsible should be held accountable.”

McHenry in a separate statement stopped short of calling for Gruenberg to step down but said he “never should have been reappointed or confirmed in the first place.” McHenry said his committee will conduct a “rigorous investigation,” including hearings and transcribed interviews.

“Under his leadership, the FDIC is at best preoccupied with this sideshow and at worst compromised,” McHenry said in a statement. “Chair Gruenberg clearly bears responsibility as these allegations occurred during his tenure as either a board member or chairman. There is no excuse for this alleged behavior, which is why the [FDIC] Inspector General must brief the Committee as soon as possible.”

The agency watchdog in 2020 found the FDIC did not have an incentive system in place to encourage employees and managers to create “a culture in which harassment is not tolerated” and to report and investigate complaints.

Gruenberg on Wednesday was forced to backtrack after telling the House Financial Services Committee that he himself had never been investigated for workplace misconduct.

“You asked me a question earlier,” Gruenberg told McHenry, reportedly after Journal reporters contacted the agency for comment. “For clarification, in 2008, I was interviewed pursuant to a review done in response to a concern raised by an employee, and I’m not aware of anything that came out of that review.”

Rep. Bill Huizenga criticized the official for having “perjured himself” — though he stopped shy of calling for his resignation.

“It’s clear that there has been a failure in leadership,” the Michigan Republican said in a statement. “I fully expect the FDIC and its Chairman to cooperate with our investigation to ensure the safety and soundness of our financial system.”

An FDIC spokesperson said the board would proceed with a vote that had been scheduled for the meeting Thursday, on whether to approve a final rule that would charge big banks an additional fee to shore up its deposit insurance fund following losses from two regional lenders earlier this year.