three-day libertarian party conventi. friday's speakers include robert f. kennedy, jr. and satury speakers include 2024 publican residents are candidate and -- republicanresidential candidate and former president, donald trump. also, head over to c-span.org for scheduling information or to watch live or on-demand. c-span, your unfiltered view of government. >> the house will be in order. >> this year, c-span celebrates 45 years of covering congress like no other. since 1979, we have been your primary source for capitol hill. providing balance and unfiltered views of government. taking you where the policy is debated and decided in support of america's cable company. c-span, 45 years and counting, powered by cable. >> federal deposit insurance

corporation chair martin apologized and said he took full responsibility for deep-seated workplace culture issues at the fbi see during -- fdic. this is about 90 minutes. >> the committee will come to order. the hearing today is entitled oversight of credential regularities. one additional comment for members about the schedule. this hearing has a hard stop at 2:00 p.m. so we will not go past 2:00 p.m.

so now, i will recognize myself for four minutes to give an opening statement. there is plenty to discuss. you are first up. and we all know why. you have filled your employees. your agency and the american people. the fact that you have not yet resigned proves you take no responsibility for your actions and the words you have used so far make it clear you take no spots abilities for your actions. showing up today is not an act of courage, it's an act of hubris. hubris. >> last week, we were confronted with a report.

this includes your verbally abusive behavior. this is beyond partisanship. it is clear from this report that changes at the fdic are necessary. you are not the right person to lead those changes. president biden once said i'm not joking when i say this, if you are ever working with me and i hear you treat another colleague with disrespect, talk down to someone, i promise i will fire you on the spot. i ask my colleagues, democrat and republican, the president as well. if that behavior outlined in this report does not rise to that level, what does? unfortunately, some of my colleagues may attempt to defend the indefensible today. by shifting blame to republican

fdic chairs. let me remind my colleagues, the chair has led this agency for 10 of the last 13 years. you may hear about employees favorability ratings which come from annual surveys conducted of federal employees at federal agencies. there was a 2018 survey which includes a couple of months of former chairman williams tenure. then, 2020, during his leadership, the fdic's employee satisfaction went up to its highest level since 2012. that was before mr. gruemberg's first stent. when he returned, employee satisfaction plummeted.

i implore my colleagues to be consistent when judging behavior of our regulators. this isn't just about mismanagement. it is clear misconduct. it is a shame we have to spend this much time talking about your conduct and field leadership. there are very real leadership issues facing our financial system that deserve this committees full attention. attention. the biden administration is busy pursuing serious agendas. they are focused on policies that don't support the economy, the financial system or the needs of american families. but first, we have to focus on the conduct of the fdic chair and ensure this very important agency returns to a safe and sound manner and practice as our financial system needs it. so, we have significant

proposals at the fdic and of the fed. the endgame proposal would undergo significant changes i viewed that is quite promising. i hope my colleagues will ask mr. barr about that as well. so with that i will yield back and recognize the ranking member for four minutes for an opening statement. >> thank you very much mr. chairman. good morning. i like to thank our witnesses from the federal reserve, the fdic's for coming. don't just start by addressing fdic's report workplace cultural sexual harassment that was released last week. deeply troubling and makes clear under both republican and democratic chairs the fdic has not done its job properly.

too properly address the deep rooted work environment where they feel safe it's a chair grunberg's responsibility to make sweeping changes properly for the benefit of every fdic's worker. while the reports scrutinize chair i am disappointed the reports seem to downplay workplace concerns and complaints of harassment that occurred under prior republican agency leadership. regardless fdic's as an institution has a lot of work to do. the agency can start by expediting the implementation of the action plan i requested last year. along with the recommendations laid out in the most recent

report. as the report states tone does start at the top i am concerned that republicans have been quick to call to resign are selectively applying that standard. after all the top republicans and nominee to be president is currently on trial regarding the first of a series of criminal indictments has been found liable for sexual abuse. hopefully this concerns them to they will call on the former president to step down and withdraw his nomination now. i look forward to hearing from chair who has committed to making the necessary changes to turn the tide on the culture at the fdic's. under the leadership the fdic's has done a lot of important work to combat modern day redlining

the reinvestment act not to mention the quick action taken to prevent last year's regional bank failures from spiraling into a full on financial crisis it. as important as this work is it will be permanently tainted if the working environment of the people doing the work remains marred in toxicity. it is crucial that we have a regulator who works every day to not only promote stability and ensures that banking system serves all of our constituents also treats i want to applaud fdic's and fhfa after the bank failures to implement section 956 to hold bank executives

accountable. it's a past time for the fed and other regulars to file suit and implement this congressional mandate without further delay in addition i look forward to it our regulators are doing to build on committee democrat record of protecting consumers in light of the proposed capitol one and discover merger to create the largest in the country i want to hear what regulators are doing the rubber stamp and strength merger reviews i am glad they announced to hold a public hearing in july. i hope regulators listen to the feedback and block at this thisy flawed version. crisis works and i'm also eager to hear about the efforts to ensure climate risk is taken seriously as a risk to our banking system. diversity and inclusion is front and center. especially in the light of

misguided republican attack ever look forward to today and i yield back in. >> would not recommend the chair of the finance solicitation monetary policy subcommittee of mr. barr for one minute. >> the cleary report on harassment issues at the fdic's outline your temperaments and inability to lead chosen agency and crisis. as a report made clear stubborn lack of self-awareness and mismanagement mean that you are not the person to respond to the fdic's crisis and you do not have the moral authority to lead the needed transformation of the fdic's. that the report and your prior participation and operation chokepoints that leadership to the fdic's that you engaged in makes it clear the agency of the safety and soundness of our financial system and therefore it is time for you to resign. you think for one minute the misconduct outline of the report was uncovered at fdic's ray guided bank chair any kind of

grace to the management of that bank. the question answers itself part how it's made by ongoing position clear the fundamentally flawed proposal must be scrapped and at most there should be a re- proposal if justifiable. i yield back. >> of the ranking member the financial institution of monetary policy committee will be recognized for one minute. mr. frost at right. >> think it mr. chairman. last week, like many of my colleagues i was appalled by the findings of the independent review any allegations of sexual harassment and interpersonal misconduct for far too long. the report paints a picture of an agency plagued by toxic culture that has allowed ledinappropriate workplace condt to persist without accountability. despite the purported efforts under both democratic and republican administration to address this ongoing issues for more than a decade. the authors of the report is

someone who has less organizations starts at the top we need agency leaders who comprehend make sure retract and retain staff. they have important work to do. much of it will be highlighting today. it is essential to the success of that work meaningful action is taken to address these long-term personnel issues. i encourage my colleagues to take the time to fully review the facts of the situation. >> the honorable michael s barr of the federal reserve board of governors. the honorable martin j grunberg, chairman of the board of directors of the federal deposit insurance corporation mr. michael sue acting comptroller the office of comptroller of the currency.

you'll be recognize her five minutes to give an oral presentation you all are accustomed to this, testify before this can without objection be made part of the record. without objection the statements of the honorable todd harper will be included in the record as well. he is not here today because of the circumstances. made well aware of the committee well beforehand. we will include his testimony without objection. finally, before we begin i will swear the witness is in. if you raise your right hand. i will ask each of you to respond individually do solemnly swear or affirm the testimony you will give it before this committee the matters under consideration will be the truth, the whole truth, and nothing but the truth so help you god? again mr. barr, mr. grinberg,

mr. sue thank you. you may be seated. reflect each witness answered in the affirmative. we will know or recognize advice at chair bar for five minutes to give an oral presentation of your remarks. >> chairman, ranking member and other members of the committee. thank you for the opportunity to testify the federal reserve supervisory regulatory activities. accompanying my test minute federal reserve semi annual supervision and regulation report. today i will discuss current conditions the banking sector. supervisory activities, and some of our recent regulatory proposals. overall the banking system remains sound and resilient. thanks to continue to report capitol and ratios above minimum capitol regulatory levels. overall quality remains generally sound.

capitol ratios increase throughout 2023 leaving the system better position to weather potential losses liquidity's conditions overall are stable notably liquid assets on balance sheets remain above their 10 year average throughout 2023. additionally there's been a decrease in the share of uninsured deposits in the system. however both supervisors and banks must remain vigilant for expected and unexpected stresses presently there are several risks we are monitoring. delinquency rates are rising among certain commercial real estate loans such as those backed by offices some consumer loan sectors. delinquencies are now at a five year high. credit card auto loan delinquencies have been rising. response to rising delinquencies banks have increased provisions. both are capitol positions the banking sector as a whole should

be prepared to absorb loan losses that may materialize and continue its vital role providing credit to households and businesses. the federal reserve continues to monitor these conditions closely. it is been a little over years r since the sudden failure and the ensuing stress in the banking system. events which highlighted the need to improve the speed, force, supervision make progress on these goals as a banker grows in size and complexity. second, we are modified sing supervisor processes once issues are identified they are addressed more quickly by both the banks and supervisors. third we are finding ways to better incorporate forward-looking risk analysis into supervision. the lessons learned are not only

applicable to our supervisory framework, certain aspects show enhancements to art regulatory framework would benefit the safety and the soundness of the banking system. one of these enhancements was in process several months before the failure. advance notice of proposed rulemaking expanding application of long-term debt requirements to additional large banks subsequently the fdic and the occ followed up with a proposed rule that increase the options available within the resolution process and enhance financial stability we are going through comments were received on this proposal carefully. another important areas liquidity risk management a striking feature of lester's and bank stress signature bank and first republic struggled to cope with unprecedented outputs. banks found difficult to monetize through transactions under severe stress were not

adequately prepared to utilize the discount window. we are exploring targeted adjustments to our predatory framework that would address each of these concerns. deposit outflows, maturity monetization discount window preparedness. federal reserve lending to banks through the discount window plays an important role in the quiddity and stability of the banking system and the effective implementation of monetary policy. we are reaching out to a wide range of depository institutions of all sizes to learn from their experiences with the discount window in order to improve our operations. turn to capitol safe and sound banking system is critical to healthy economy and capitol is foundational to safety and soundness. well-capitalized banking system reduce the probability stressful conditions result in financial crises which inflicted devastating economic cost and suffering for families and

businesses all across the country. since my last testimony we have received numerous and meaningful comments on our proposal. we receive additional data we are closely analyzing this information i expect we have a set of broad material changes to the proposal that allows us to have a broad consensus and moving the proposal forward. the changes will enable us to have a safer financial system better it serves american households and businesses, thank you. >> in general you are recognize her five minutes. chairman mchenry, ranking member waters and members of the committee, thank you for the opportunity to appear before you today. my written statement reports on chairman mckenna, ranking member waters and members of the committee, thank you for the opportunity to appear before you today. my written statement reports on the banking industry and the condition the fdic's deposit insurance fund. the written testimony also provides an update on fdic's resolution activities discusses proposed and regulation and

supervision. however i would like to focus my remarks today on the fdic's ongoing effort to transform workplace culture. let me begin by saying i am deeply committed to the fdic and its mission as well as to the people on whom that mission depends. that that's why it would reports of sexual harassment, discrimination and other misconduct surfaced last year it was essential as a starting point to gain a deeper understanding of the agency's workplace culture. that my direction fdic's and fdd an independent third-party review to determine the depth and extent of these issues. last week the results of that review which was conducted by the law firm were released. the review found for an extended period of time the ftse is

failed to provide a workplace safe from sexual harassment. other personal misconduct. i accept the findings of the report and as chairman i take full responsibility to anyone who has experienced sexual harassment, discrimination or other misconduct at the fdic's i again personally want to apologize express how deeply sorry i am. i also acknowledge my own failures as chairman both in failing to recognize how my temperament in meetings impacted others. and not having identified the deeper cultural issues at the

fdic's sooner. i am personally committed to addressing these issues. we accept all of the recommendations of the report and are incorporating them into our existing action plan for a safe, fair, and inclusive work environment. to restore credibility to our workforce must act swiftly on the reports recommendations and demonstrate a commitment to making fundamental change. for this reason we are already implementing several key recommendations of the report. the report recommends we identify a point of transportation monitor. will monitor, audit and report implementation of the recommendations.

we have already begun this process and will issue a request for proposals for this purpose as early as this week. the report also recommends we engage in independent third-party expert to support our efforts it. we have begun that process will issue proposals for that purpose as early as this week. the report recommends a fundamental change to the agency structure and procedures for receiving and investigating complaints and taking disciplinary action against misconduct and light of the failures of the existing offices delegating those duties. will do it by proposing establishment professional conduct directly to the fdic's board of directors. will be charged with fulfilling these responsibilities to

conduct investigations for the transportation monitor independent third-party expert will advise us on this proposal. since december fdic's focus on implementing its action plan to address all aspects of the issues raised in these reports last year represents an agencywide effort with participation by employees at all levels. many recommendations outlined in the report are already encompassed by the agency action plan. the action plan is focused on three core elements providing more support and resources to victims, strengthening our process for reporting and investigating complaints and approving accountability for anyone who is found to engage in misconduct. including their separation from the agency. the office of professional conduct will address these core it's my privilege to lead and work alongside the fdic's people

are dedicated to the agency and its mission. deserve a workplace where we all feel safe, valued and respected as no higher priority for me then delivering on that commitment. thank you for the additional time mr. chairman. >> you're wrecking us for five minutes. >> think it mr. chairman. ranking members of the committee and pleased appear to provide an update on the activities and priorities. overall condition federal banking system is sound. as a seat supervise a bank and aggregate continue to have strong levels of regulatory capitol sufficient liquidity buffers the risk for commercial real estate the interest rate warrant attention. supervisors need to remain on guard against complacency. one of my top priorities for the agency. occ bank supervision operating plan for 2024 highlights asset liability management, credit risk allowance for credit

losses, cybersecurity, operational risk and consumer compliance risk. another priority has been promoting fairness in banking. this april mark the one-year anniversary occ guidance to assist banks and managing risks associate with overdraft protection program since the occ heighten tension on overdraft began the fees charged by it regulatory banks and aggregate over 40%. digitalization has been a third party for the agency. we recognize the community banks may face hurdles and risk management third-party relationships including earlier this month occ federal reserve fdic published a third party risk management guide for community banks with innovative approaches to due diligence in assessing new relationships. occ supports bank merger

analytical frameworks. we remain committed to work their inter- agency appears including the department of justice on this effort. to increase the transparency generate 29 we released a proposed policy statement on bank mergers week recently extended the comment period to june 15. written testimony has greater detail on these and other activities of the occ. as cochair of the special review committee i like to address briefly recently released independent report on harassment and misconduct. the top priority for us all must be protecting the staff of the fdic's and putting people first. the harassment and misconduct detailed in the report are totally unacceptable. the number and scope of allegations in the patterns of misconduct the long-standing culture revealed by the review are highly disturbing and need to be fixed.

the root causes and or recommendations cited in the report provided clear roadmap of what needs to be done and why. that's why our attention must be focused to ensure the fdic's a safe workplace for all of its employees. as a matter of the fdic's board i am committed to the transformation called for in the report. i'm especially supportive of the report's recommendation to engage external expert and establish independent monitor to engage -- to assure the agency efforts are tracked and that accountability is enforced. i also believe german gruenberg has expected responsibility for his and the past feelings and he is fully committed to lead the agency and taking actions necessary to make it a safe place for everyone to work. thank you, i will be happy to answer any questions. correct thank you. i will not recognize myself for five minutes. if there are significant changes to your capitol proposal, what

you commit to repurposing the rule for notice and comment? >> if not my decision on process were focused on getting substance right. quick slipping opportunity for notice and comment what the next proposal is. >> have not focused on the process we really are still trying to work out with the substance and make sure you get it right. we have not made a decision yet picnics we intend for you to comply with the a law. >> 's chairman, we take the time line on the last 15 months. signature bank in april your own chief risk officer reviewed at the icy actions leading up to signature bank failure including staffing, weatherby shortages or communication issues later and november revelations about the workplace environment started to

appear. you testified before the committee of the wall street journal reported on the toxicity of the fdic's workplace. ripe with harassment independent law firm commitment at the i see released a report not only confirming your inappropriate conduct, but confirming the toxicity of fdic's culture and workplace environment by expanding on above. no need to go into the details a of report at this time. but looking back, i can say with confidence fdic's workplace issues played a role in signature banks failures. would you? >> think it mr. chairman. i appreciate the question but as you indicated our chief risk officer did a review of the failures. >> no, i am asking you, do you

believe the workplace issues impacted the signature bank failure in the response to it? >> i'm indicating, mr. chairman, the report did not identify that as an issue. >> i am asking you, do you think that is the case? you don't need to cover the this stuff to use time. >> as far as i am aware it was not a significant contribution program okay let's of the snow this report do you accept the report? >> including the claims of your actions to your direct reports and folks in the agency? >> i do. you accept that? like i do for. >> a workplace environment presented with bad news first reaction is to yell, scream, or berate to the person presenting the bad information. do you think a bank failure is bad information? >> it is. >> did you remember responding to that bank failure weekend

with any level of anger? >> and no. >> no anger? >> no. >> the report indicates you are predisposed to pure anger and rage when presented with that information. do you accept that as part of the findings of the report? >> we are to believe in the weekend three major bank failures that you are not angry at you did not get angry when presented with that information? >> i did not. >> you've led the agency for 10 of the last 13 years but we hadd significant bank failures it. do you think the fact that you respond to bad information by attacking or yelling at the person presenting that information makes those people less willing to present bad information to you? >> i treat every employee with courtesy and respect precooked that is out with the report

indicates. that is why mask a specific question if you berates it the people, you asked the question of? >> the report indicates even in circumstances in which i treat employees harshly in the conversation, employees still bring bad news to me too. >> the report indicates one senior executive put it there is a great reluctance to deliver bad news to marty gruenberg a number of employees including senior executives in his behavior hampers free flow of communication you led the agency for 10 at the last 13 years. your behavior is such that you apologize for folks in the agency experiencing harassment and sexual harassment. you never have apologize in your written statements, press reports are here before this committee for your actions in this report. there is no apology to the

people you berated of the last 13 years of the agency actions last 20 years of the agency. but you leading every 10 years. do you apologize to the people that you affected question consistently to mr. chairman. >> you certainly do picnics or take responsibility for it. >> you take responsibility but you do not apologize? >> no, i do apologize. >> okay, alright. i don't recognize the ranking member for five minutes. >> chair, in a hearing last november after the wall street journal articles were published i asked you to provide an action plan outlining the steps to the fdic's plan to take to address workplace issues related to sexual harassment and misconduct. and to ensure all employers are have a safe work environment on

december 1, 2023 you provided that plan addressed eight major areas and contained over 30 specific tasks to be completed under those general areas. approximately half were to be completed at this time. the other half were to be completed before the end of 2024. which tasks have been completed and what improvements have come from them? >> thank you congresswoman. as i indicated we initiated that plan in the immediate aftermath upon learning about these matters. i directed a third-party review. that review has now been completed in addition the action plan has a number of specific action items we are in the process of implementing including increased protection for victims.

post checks and regard to workplace culture in the range of other action items we have been in the process of implementing we will complete by the end of this year. the report that was released last week we have begun to implement core recommendations of that report including action to retain an independent monitor to audit implementations to retain an expert third party to advise us on our culture change efforts. i have indicated the core objectives that we are trying to address for the agency are to strengthen the ability of

employees to report misconduct. to provide independent investigations of misconduct including by third parties. and to strengthen our disciplinary process so that there is swift and certain justice for victims appropriate to the misconduct that has occurred. including separating individuals from the agency. i might also indicate this year for individuals have been separated from the agency. we have made management changes in key positions relating to this issue. the implementation of a new independent office of professional conduct will result in significant additional management changes by the agency. we are committed to transformational change. to the structural change i believe is the core

recommendation of the report we have already begun to implement that. >> so what you are saying here in committee today is you have implemented the plan. some have been completed there's more to be done. you can see the results of that plan already, is that correct? >> we can see strength and resources for anybody who was victimized. a hotline for anyone to report or seek assistance. we have instituted a training program for all 6000 employees which is already well underway and is already trained a significant number of our employees. we are following through on all the action items in the plan. >> i believe clients must feel free to engage in discussions and give complaints and have their concerns dealt with.

do you sense and what you are doing your opening up the opportunity for employees? >> i believe we are. we have enlisted employees across the agency and participating in the implementation of the action plan. we offer expressions of interest to employees and washington as well as the regional offices to participate. many are. i think the agency across the board is deeply committed to addressing these issues and following through on implementing the action items for. >> thank you very much and i yield back. >> a gentle lady yields a back will not wreck a nice device or the full committee sorry or the vice chair of the fed will recognize the vice chair of the full committee mr. hill for five minutes per group. i think the chairman thank you for calling this hearing with our prudential regulators.

chairman greenberg, before i get into the more substantive part of my discussion you and i had a discussion on the phone i said since the 1990s the federal supervisory agencies have failed financial services country to an incredibly high standard about workforce practices, human resource practices, diversity training. the review of a bank regulators of regulated institutions. as i said to you on the phone i think this is a horrible double standard here at 35 years later or 30 years later we having this kind of discussion about a federal agency that's at the epitome of leadership and the financial oversight and supervision. i feel that really disappointing and that's why i joined my colleagues and suggest in the best interest of banks and the agency itself in your employees that you stepped down as chair. you answered a question to chairman mchenry somehow you did

not get angry. i am looking at the report itself around the time of silicon valley failure may 2020 there's a meeting intended to regulations with the chairman. he switched topics to talk about bank failures and according to one of the participants, chairman gruenberg went on a rant protecting his ire at an individual threatening he could fire or reassign anybody he wanted. that meeting was so uncomfortable the person who felt targeted by the chairman sent a team's message out to everyone who was on the telephone. i want to say i'm not sure you answer that question truthfully do you want to respond on that to the chairman? >> yes congressman. the question directed to meet with on that initial weekend of the failures i was responding to that i think the point you raise in regard which is well after that as you know. >> i don't think we should parse words here. i do not consider that response.

that rule making the final rule was not a logical outgrowth of the proposed rule a case like that also brokerages the sec in 1993. tim pinero versus sec in 2013 investment company institute versus. the agency final rule deviated so much of the proposal the court concluded commoners were not given adequate opportunity to have feedback. in other words if you want to try to fix a bad proposal the public must have a meaningful opportunity to comment on this unanticipated change. bloomberg and other outlets have reported the agencies all three of you represent today have already decided to address the original proposal rather than start over. let me start with you vice

chairman have the agencies already agreed to tweak and not start over? >> we have not made any decision at all with respect to the processes. i indicated to the chair when the bloomberg article came out the federal reserve issued a statement indicating as such. we are very much focus on the process. approximate asked chairman gruenberg of the agencies among themselves decided in fact they're going to tweak this rule and make it final and not re- propose yes or no question. >> note center. >> there are substantial changes need to be made of this rule many believes this rule should be re- proposed. all three if you are a member as you probably heard secretary yellen's call last week that we need to establish a federal bailout fund and shoot here and thatcomment vice chair?

>> i'm not sure i would've characterize the comment in that way. i did issue a report on non- bank you've got a risk associated progress it should wt call for a federal bond to support them in case they got into financial trouble? >> the report had a set of recommendations. one was for congress to think about industry funded liquidity facility. >> omit reclaim my time on that. let me remind all of you why are we in this boat? because it dodd frank pushing a mortgage servicing business out of the depository institutions that were regulated had regular supervision and shifted it to the non- bank sector would you say that was a primary cause the dodd frank act did create that incentive? >> there were a set of factors that gave rise too. >> is one of the factors would you agree that? >> one of the factors was the

way in which technology change and the economy. cosell yelled back mr. chairman will questions for the record on that topic. >> agenda from california mr. sherman. >> exclusively to the revelation the fdic. what we have here is the hobson's choice of using our time to focus on how 6600 employees at the fdic been treated and how we are going to dramatically affect the entire economy. i am going to focus on the latter but i hope we have a hearing where we can focus on the former i'm happy happy to comment the ranking member. my concern is this overall approach versus being sold as if it is conformant with european or international standard but we

are going to have a much higher standard than europe. that means less lending. of higher standards but that we will have lower standards and we should have for money going to wall street. for example we ignore the interest rate risk on a long term bonds that are in the hold to maturity account. i want to commend you for at least dealing with the available for sale accounts. wall street investments as we learned is the interest rate risk that is the big risk that risk is undercounted. only 65% rate for loans to publicly traded companies were an equivalent company that is not publicly traded one 100% rate. there are many ways to raise money on wall street the local pizzeria could only raise money from the bank and anything that makes it long less likely to

happen concerns me. i want to focus there are rumors or reports you are going to change the rules for discount window. i would hope you'd make that window more available to small and medium-size bank the proposal is the amount of capitol that would have to be pledged would relate not just to the amount being borrowed but whatever the bank had an uninsured deposits. you would end up with the absurd circumstance of a bank wanted to borrow a million dollars but happen to have an uninsured deposits it would have to pledged $400 million in capitol to make a million dollar loan to borrow a million dollars but can you assure me the amount of capitol that you have to pledged a bar from the discount window will relate to the amount your ordering from the discount window and not based on the total uninsured deposits of the

bank? >> think you represented sherborn. you touched on quite a number of topics. as in the credit site for us all with respect to capitol if you could just focus on the question i asked. >> the question related to disc out preparedness we are working to the substance of that now. we are looking for a range of measures to make sure banks are ready to use the discount window. >> can you assure me the amount of capitol you pledged will relate to the amount you borrow from the discount window and this will not relate to the general balance sheet of the bank? >> yes or no questions are. >> we are looking at a range of ways for. >> okay that is not an assurance the absurd example i just gave you could come under your answer be the new rule. >> i'm not sure i fully understood the nature of the example. we are looking at a range of ways. >> i would hope we would make it

possible for midsize banks to accommodate charities and businesses that have to have a count of over two and $50000 for operations. i am concerned about the effect these new rules are going to have on our capital markets. i do want to focus on the 65% rule you applied it to publicly traded borrowers. what about mutual funds, and pension plans are the reasons they would get the 65% rate? >> will get comments on these issues with respect to the proposal. we received helpful comments on respect to pension fund and mutual funds frequency measurement you will treat clean energy tax credits as we treat low income housing credits? >> on the tax credit provision appointing out for example the return to the investor is not based on the equity investment.

but really on the tax credit return. that is that useful piece of information for us. >> i would hope you would design these rules so that banks won't lend money to small businesses rather than simply put their money in highly risky long-term bonds sold on wall street. i yield back. >> are judgment yields back will go to the gentleman from oklahoma for five minutes. >> thank you, mr. chairman. there are certainly many issues that deserve our attention today. it has been concerning to hear that the report on the severity of the cultural issue at the fdic and workplace problems at the chair level. from the report it appears repairing the situation will be an all-consuming task. if the same activity had occurred at a financial institution by bank executive, i can only imagine how the response would be dramatically and very different.

confidence in our banking regulators matters. leadership matters. in addition to the top down cultural overhaul there are many important policy issues the at the i see must be focused on that impact all sectors of the economy. the actions of the banking agency have a profound effect on the folks back home. one particular area of concern i focused on is a boswell proposal impact on egg and energy producers. which our constituents depend on to keep food and power both affordable and reliable. the proposal that is generate and uncompress in a response from all sectors in the economy. mr. chairman, i like to enter a few letters into the regular joint agricultural trade association letter but a joint energy trade association letter and lastly a letter from the american public power association the national rule elective cooperative. >> of that objective. >> i hope you have the all have

the opportunity to review these comments and others from sectors and the economy it typically would not be compelled to weigh in on these issues. which speaks to the breath and consequences of the current proposal. another thought along those lines, like to further underscore a consequence from the endgame proposal that stems from the increased capitol requirements to engage in client clearing activities. and dodd frank congress mandated central clearing as a way to reduce risk in the system. however, the number banks that clear for end-users has reduced over time. making it more difficult to find a bank to offer the service. i have a real concern the basel requirements will significantly constrain the capacity of banks to offer central clearing.

proposal actively penalizing that activity. how do you reconcile this contradiction? >> thank you, congressman. that is one of the key issues in the report. clearing that are derivatives during the 2008 financial crisis and it's been a focus of attention in the capital accord. we have received a lot of comments on this issue and i acknowledge the points you are raising it is still a work in progress. we are taking careful attention to all of the comments we have received in regards to this. we are taking it very seriously i agree with you that it is an

important way that we reduce risk in this essential system and we have received comments on the derivatives in a number of areas of the proposal, and we are taking this quite seriously. >> i believe your agencies have a responsibility to ensure that the bank capital standards do not unnecessarily discourage central clearing market participants on the clearing side and end user side of warning what's to come. i urge a completed proposal make the changes necessary and allow congress and the public to weigh in. the consequences of getting this wrong armor to severe. in my remaining time an issue i've heard concerns about is the corporate governance proposal. the guidelines would be a significant departure from existing practices and it's its aimdatabanks with lower and satisfies them the government regime's at fed and occ are far more pre- scripted. the board of directors play an

essential leadership role for the bank and should be held to a high standard. could you elaborate on this and clarify if it is a high priority to ensure the proposal is in line with of the occ? >> thank you, congressman. about 50 billion-dollar standard we are receiving comment on that and that is something we are paying attention to. >> my time is expired. >> the gentleman from new york is recognized for five minutes. >> thank you mr. chairman. i agree with mr. sherman. i wish i had another opportunity to have two phases of this. i would love to talk about some of the substance of the economy,

but as i sit here right now if i'm going to be honest, i am just off. that is my language where i come from. now i'm pissed off because the very idea that employees suffer from racial and gender discrimination, mistreatment and harassment at the fdic three years and as i see in the report, not a single one resulted in a removal, reductions didn't take or any discipline more serious than a mere suspension. i've advocated for diversity, equity and inclusion my entire

career. so i can't set up. to say that i'm all right with it, because i'm not. it concerns me greatly. in my office [inaudible] i don't understand. maybe you can tell me how can trust and credibility come back to that agency for all of the workers that were denied and people who may want to work at the fdic how can i trust and credibility be returned under the current leadership? >> thank you, congressman. we are devoting all the resources of the agency and engaging employees across the agency in addressing this issue. there is no higher priority.

>> when did you find out about the special committee's report that was revealed on november 201st, 2023? >> you are referring to news articles last year. the special report was just released a week ago. >> the news articles different, when? >> the first time we heard about harassment or anything of that nature. >> the workplace issues identified there were in those news reports we immediately, i am immediately directed a third-party review to get an agencywide assessment from an independent source to understand the nature of the challenge we were facing and what we needed to do and that report was

released last week and it has given us, if i may say, a line of sight to the nature of the issue. >> what i don't understand is number one how it could take place for all the years that it took place and admittedly you would not determine the whole time, but you've been there forever and i would think if someone were to see that type of harassment or activities taking place, somebody stand up especially if you are in a leadership position and say something. and i believe i do have the responsibility of holding everybody that comes before us to accountability. let me ask now you and i believe mr. johnson was cochair of the special committee; that's correct? >> correct. >> and i heard you say in that report, there is a report about

some of the specific emotions i will say that allowed this conduct of the chairman. >> is that correct? >> the report cites the ten root causes of all of the issues that are deeply disturbing. the chairman wasn't cited as one of those root causes. there are a lot of causes and they all require work and an enormous amount of cultural into structural transformation. >> do you think that the current leadership can restore trust and credibility at the fdic? >> i do. >> and let me ask you this question. do you think that the three women added onto this committee were added into the committee enough times that they have meaningful participation in the committee's works? >> i do. >> i yield back the balance of

my time. the gentleman from texas mr. sessions is recognized. >> gentlemen, i have on my door in texas, our district headquarters, when leaders sell ambiguity, it discusses the role of leadership. i think you sell ambiguity. i think all three of you sell ambiguity. were you aware that in july, 2020, a report found that the fdic had not established an adequate sexual harassment prevention policy? >> if you are referring to the fdic oig report -- >> im. >> yes. >> so why did you try to parse the words about which month this was and whether it was just the other day or not? just in the conversation you

had, referred to 2024. you didn't say 2024, you eat eluded to it just the other day. you didn't say just the other day. it became apparent that you are talking about recent times. >> do any of these employees presented here, do they report to your organization? >> i'm sorry, can you repeat the question? >> in your line of management did any of these employees that are mentioned here in this report -- >> so, -- >> that is a yes or no. >> i want to make sure that i am complying with privacy laws. >> did they report within your organization? >> i'm sorry. i can't answer the question. >> you can't answer that? let me go back and tell you in

ambiguity when leaders sell ambiguity to the business world leadership, i will expect for you to write as an answer that yes or no i will hold a private and i would like the chair and the ranking member to get that also. did any of the people that are mentioned here report within your organization? >> my understanding is that the report focuses on the fdic. i don't have any information. >> so were you aware of a july 2020 report from the office of inspector general that specifically said that the fdic had not established adequate sexual harassment programs? >> i learned of that great work not in 2020, but i am aware there was. >> what year do you think you learned about this is a problem by the inspector general? >> at the fdic. >> well, yes. >> i don't know. i learned about it at some point

after joining the federal reserve board in 2022, but i couldn't tell you exactly when. it's about the fdic on the federal reserve. >> have you looked at it and context of your organization? >> the federal reserve has a very strict zero-tolerance policy for sexual harassment and discrimination. >> this is what i'm getting at. so your organization had this is a very strict policy. why do you think -- mr. chairman, mr. greenberg, why did your organization not have a strict policy? >> we had a policy at the time -- >> strict policy mr. greenberg. >> the report found shortcomings in our policy and had 15 recommendations that i believe the agency addressed. if i may say -- >> that was back in 2020. >> yes, that's what i'm referring to, the ig report from 2020.

>> so why did you have to hire an outside firm to tell you what the ig had told you? did you not want to accept what they had to said? >> i believe the agency at the time did accept the findings of the report and in 2020, if i may just, congressman, the 2020 report did not identify the type of deep-seated cultural issues that the recent trip would. >> is that right? >> end of the news stories last year identified. >> so these were things that came as a result of your leadership then. they were brand-new. >> i think the report -- >> that's what you're suggesting to me. that wasn't old this is all new. >> if i may say, congressman, the report indicates that it's long-standing challenges through the agency simply indicating that the 2020 report did not identify the nature of the cultural nature of the issues and that came along later.

>> i find this very disturbing. i find that there is a lot of ambiguity and a lack of acceptance of this and yet i find that they openly say we will take responsibility. i see very little responsibility and yield back the balance of my time. >> the gentlewoman from georgia, mr. scott for five minutes. >> thank you, chairman. mr. barr, i want to talk to you about this complex and complicated issue and especially the impact that it's going to have on two groups, the lower income people into the banking system. this business of lowering the caps on debit card interchange fees would definitely hinder the

bank's ability to offer low-cost and no-cost bank accounts to low and moderate income americans. are you aware of this, and what do we do about it? >> you raise an excellent point and i spent a good deal of my career trying to improve access to credit and financial services for low and moderate income people. the regulation requirement is a requirement that congress set out for the federal reserve to determine if the fees are reasonable and proportionate to the costs incurred that are specified under the statute and the federal reserve has maybe made aproposal to update that r. we have received lots of comments on that proposal including the kind of comment that you i think very appropriately laid out and we are in the process of thinking about those comments and deciding what to do next.

>> and i'm also concerned about our small business owners and their incurring costs from debit card swipes on a regular basis. now, as i said this is a complex problem. it's something that does not need to be rushed into. i don't agree with it, but my question to you is if the allowable fees on the debit card swipes are lower, does the fed to share the bank's concerns? our banks have big concerns on this about the availability of the low or no cost bank accounts for consumers or are the

concerns overstated? we just finished the comment period so we are in the process of receiving those comments. we take them very seriously. we are reviewing them now. i don't have an answer to your question yet but those are the kind of comments we will take very seriously in the stage of the proposal that we are. >> mr. chairman, i would hope that before we move on anything dealing with this that we get a total understanding of the impact on low income and on our small businesses because it is clearly complex and complicated. you rush into these things unprepared and cause great havoc. we did that with dodd frank and

when we move, we wanted it to to bailout the big banks first until i raised the objection to the president. i said president obama, i'm not voting on this and he said why. i said because you can't solve this problem bailing out the big banks and looking at it haphazardly. we've got to do something about the homeowners who are having mortgages combined with these high rates of unemployment. those were the consequences of it and luckily he told me go to work and do something and we came back hardest hit. i think we probably knew to do the same thing with this approach. i yield back. >> the gentlewoman from florida for five minutes. >> thank you, mr. chairman. i would like to yield to the

gentleman. >> thank you. i'm sure you have seen the report on the toxic workplace at the fbi's the end of the temperament of the colleague keeping in mind you have the duty to be truthful to congress. can you testify whether there've been any occasions in which he is directed anger and ill temperament towards you including discussion on the 2021 effort related to the bank merger act. >> no, not anger. passion, yes, but not anger. >> so you would describe the heated conversation that you had in 2021 related as passionate, he did, but not ill tempered? >> correct. >> you have said you think that he is capable of resolving the

issues despite what you have witnessed. one of the factors the bank supervisory used to rate the financial institutions as the quality of management. if the occ were to uncover the kind of misconduct identified at the fdic in the report at one of your own regulated banks, what rating what they give to that bank's management on a one to five scale with one indicating the strongest performance and five indicating the weakest? >> so it was a function of a lot of the parts of the assessment so it depends on the safety and soundness. >> you know what i'm getting at mr. acting comptroller. a toxic workplace, harassment, sexual harassment, discrimination, interpersonal misconduct, replete in the report at the fdic. if you found that, if one of your examiners found that at a

national bank, how would you rate the main management of that bank? >> we would read it accordingly. does that mean requiring attention? >> it depends on the severity. >> i'm talking about this kind of severity. >> this is a severe i would agree. >> 97% of the almost 400 comments on the proposal were to express concerns with 86% of the negative comments coming from outside the banking sector. you stated publicly and privately that the public will be able to comment on the qis. given the overwhelmingly negative comments from the proposal from various ideological, various parts of the spectrum from across the country and various industries, why is there even a question on whether or not the proposal should be withdrawn and full? >> we are looking right now at the substance of what we think about the comment as i've suggested to you on numerous occasions.

we've got a good, deep, substantive comments and i expect we will make material changes across all three areas in the proposal, operational risk, credit risk and once we decide on what we think the appropriate substance is, we will turn to the question of what the appropriate process is. we've not gotten there yet. >> and i appreciate that and the fact that the fed is open to those broad material changes, but to follow on the excellent line of questioning, the case law is pretty clear. so again, why is there any question whether or not there would be a withdrawal and proposal giving commenters the ability to comment on the new proposal? >> as i said, we will follow the law and we will follow the administrative procedures act. there's no question about that. we just haven't returned to the

procedural question yet. we are focused right now on the substance. >> thank you for your commitment to allowing for comment on the cube i asked. what is the timeline on the release? >> staff are working diligently on that in the process of quality control and review. it will be relative. >> one final question, and i know you've worked hard on this and we go back and forth, but one thing i'm concerned about is the proposal will likely raise capital requirements for the institutions by more than 20%, and there's evidence that in the eu in the uk, implementation of the endgame proposal would be at a much lower calibration closer to five to 7% increase. are you concerned about the gold plating here in the united states putting our institutions at a competitive disadvantage? >> we are looking at all the comments including the question of gold plating.

i would say at a much higher level, congressman, it's been my experience having very strong capital requirements in the united states has been to a competitive advantage to the firms who are thriving in the marketplace. >> my time is expired but remember the objective of the endgame was harmonization. with that i will yield back. >> the gentleman from connecticut is recognized for five minutes. >> thank you, mr. chairman. and thank you to the witnesses for being here. i despise these congressional pylons for a couple of reasons. number one, i've always very much enjoyed the working relationship we had in crafting regulation. and number two, the high budget and moral outrage suggests we are great managers and excellent at taking responsibility or don't have feet of clay and there's no evidence for any of that, but we are charged with oversight. and i've read the report and i

have a particularly difficult time with the sexual harassment part of it. i grew up with a single mom and two sisters and i have two daughters and i see every day the challenges women face in the industry and around, so i have a really hard time with some of what we see. my question for you is your opening statement hear you say that when news reports of harassment first surfaced last year, were you completely unaware ask. >> i was aware of those under the normal processes into the deep-seated cultural issues identified in the news reports last year and in the report that was recently released. if i indicated it was a failure on my part i simply did not

identify the deep-seated cultural issues that were revealed in the news reports and in this recent report. and i will say once the reports came forward, we have devoted all of the resources in the agency since that time to addressing this issue. >> so, i want to move on because i have other topics. you said you take full responsibility if you were to skip ship in the navy i have very little doubt what would happen in those instances. but forget about us and forget about the lawyers. i want you to take a minute because i'm stumbling over this. i'm the right guy to fix this kind of thing. so forget about us and the lawyers. i want you to imagine that instead of us, you're looking at the young woman who was in private, she should be a surrogate for her bosses child, the man that felt he had to hide his preferences because he was called a little girl, the women who got photos, i want you to imagine that we are those people

and just take a minute and tell us, not us but those people why you are the rightful leader to lead to these critical reforms. >> thank you, congressman. i've indicated that some of the people you are describing. i understand keenly the hurt they feel, the impact these kind of experiences have, and it's why i'm totally committed and i believe the agency is totally committed. we have been working on this now for several months. i believe we are making progress. i think we are going to be informed and we have been informed about the new report we are already implementing the recommendations of the new report. we can address this issue and i think it is critical to move forward and address the issues that have been identified, and

we have an opportunity to do that. >> i don't know how that works for them. i would just ask you to do that, sit with them and persuade them that you are the right leader i look forward to the moment. when are we going to finalize the process? >> thank you very much, congressman. right now as mentioned, we have a lot of comments. they were deeply substantive and we are working our way through that. we have made good progress and you heard me say and you've heard the chair say we are expecting we will make broad material changes. i expect those to occur across all three areas, operational, market and credit risk we need to work through the substance, finish working to the substance

and turned to the question of what the right process is, but we are not on a timetable that is dictated by anything other than getting it right. >> i will make the point we talked about this a lot i desperately want to be on your side. i came here in the first quarter of zero nine and spent a lot of time worrying. i want to be on your side for this and set a whole bunch of times i need to understand the analysis, underlining the call for additional capital standards. if i get that and it's persuasive i will be there but i just need to get that and with that i will yield back. >> from missouri, recognized for five minutes. >> thank you, mr. chairman. this is a very deeply disturbing moment to me from the standpoint as a former in the state of misery for a couple of years and having gone to the fdic's school when i was examiner because i didn't go there when it was the fdic's hotel as was reported by this report this morning.

i've birthed with examiners with those in examiner and banker but this report, along with the long tenure is very concerning. 10% of the people roughly complained. things like gender and race discrimination are documented and as indicated this morning, there's anger management issues for the agency. we have field offices in fear of reporting, fear of retaliation. how in the world can people do their work if they are fearful of being able to report what's actually going on? it can happen. there is a motion within the agency based on the club that they are in, which is nepotism that cannot be tolerated. of the report has indicated that

the fdic's appointment center and wall street journal article the fdic's hotel there's 24 instances. now this morning we hear from your testimony that you indicated surfaced a little while back and you just learned of it then of the depth of this. there were 92 harassment claims according to the report. you have to be either totally competent or not caring and allowed to go on and work for all of this activity. as you know resulted in the removal and the reduction and notice the more areas such,

unbelievable. that is the facilitation in the purest forms. one of the things that will happen, we want to make sure that mr. williams who was in tournament between the two terms, is also in the report and it says nothing about that. in fact it speaks pretty about her. i will quote within three months of your departure, your successor built enough trust that they felt they could share their stories into she began to work on the fdic's culture problems. they are supportive of what she was doing so the report talks about discrimination, nepotism and your anger management issues but we know more. i've been here a long while. it's my 14th year of the committee which is a long time. also, you lied to me. you lied to the chairman, you lied to the committee about the operation chokepoint, and it took an e-mail we found you

involved before we considered you and you admitted it in my office that you were involved in this and it stopped. since then, since the new term, you've been involved in it again. remember the atm operation? you or your individual person was along with your three representatives and also admitted wrongdoing there. also there speak management from the standpoint of regulation and that is what your job really is as evidenced by the banks last year. as a bank examiner, there is no way in the world i would have allowed the banks to exist 80 to 95% i'm sure deposits. are you kidding me? no way. you knew about it for a year and did nothing add doing that for the viability of the banks and the system because what happened, they went down, one around the country i got a phone

calls from everybody, all sorts of bankers wondered about what's going to happen all because of the management and lack of regulation. and you were part of the problem as well. you are the three that went in and tried to do something that managed to ouster. shame on you guys. you have become the michael cohen of the fdic you need to go. if you have the decency, please step down and if not i would urge the president of the united states to replace you asap and with that i will yield back. >> the gentleman yields back end of the gentleman from illinois from the financial institution subcommittee is recognized for five minutes. >> thank you, mr. charan. last friday they issued a report on non-bank mortgage servicing and the statement following the vote to approve the report you said the report identifies the

important financial stability concerns that need to be addressed by congress. the press release notes that in 1922 non-bank mortgage companies originated approximately two thirds of mortgages in the united states and going to servicing rates on 54%. i came in and march of 2008 and so i spent a lot of the first years cleaning up the mess of the under regulated mortgage industry and looking at the damage that did to families in america. this report notes the benefits such as supporting lending to historically underserved communities and also the risks that are associated with it. could you speak a little bit about some of the risks associated with concentration in this space and other dangers? >> thank you for the question, congressman. so, as the report noted, they've concentrated in a relatively small number of mortgage

servicers and there are certain fragility's that come with it. so if there's a disruption, that would have an impact on many, many people. >> could you be a little more specific? what is the scale of the concern, what did have implications for fannie, freddie? what would the contagion look like in this area that would be a source? >> it depends on the nature of the problem. there are strong connections with regards to the mortgage servicers and of course they are then connected to the banking system so the potential for the widespread contagion from issues or problems that the companies could be severe. >> a couple examples.

>> while, at the very extreme there could be massive disruption that would impact a significant portion of the mortgage markets in which billions and trillions would be disrupted due to that could have effects on the gse's and banks. >> several recommendations for congress including providing additional authorities to help firms manage the risks to promote information sharing between the state and federal regulators that share the burden. can you speak a little bit about how the recommendations are followed through by congress would promote financial stability? >> sure. the primary recommendation is for congress to strengthen the supervision and framework around the mortgage service companies so they are held to a standard that enables safety and

soundness in that market. that is the court of it and that envisions what i think was discussed earlier, having an industry funded that provides liquidity as necessary in case there's liquidity issues with of the servicers. >> so this would be like -- >> is it liquidity in the sense that you would never to take a loss on the fund or something where the industry says it would be responsible. >> it's more of the ladder and the details for that would still need to be worked out obviously but the industry itself would fund it. >> i'm led back to the representatives comment. there is already a threat and understanding the market moving the way it has. >> we want to make sure for any

given activities, especially with mortgages, the risk has to be managed. we want to make sure the standards are applied equally and appropriately wherever they take place whether it's in the banking system or outside the banking system and they really get at that. we want to level up and make sure the playing field is level and has leveled up. >> are they doing the job that we hoped to look around the corner and nicole stickley at the system and say are there things we are going to be having hearings about next year after things blow up to the extent you're able to foresee and prevent those. thank you and my time is up. i will yield back. >> the chair is recognized for five minutes. >> thank you mr. chairman. i want to clarify something that seems to be a well-worn path for some of the committee about this

report, they simply didn't look anywhere else. it was mentioned twice in the report once the cultural change after a 2008 altercation that you had. chair mcwilliams was recognized four times to improve the culture including creating team fdic that stands for transparency accountability mission to implement an opportunity for fdic employees to get involved cleaning up your mess once again. they had said in the briefing to the committee if there was any negative or derogatory information on any they would have included. they were silent because those two women were cleaning up your mess, sir. we all know the fdic plays a

critical role in our financial system, your job as chair is to maintain that stability in the system. you earlier said to the chairman that your staff regularly briefs non-bank policy or issues related to banks and that sometimes that bad news is regarding banks, bank failures. what we've learned in our own investigation as a committee, we did the dozens of transcribed interviews and had a dozens of whistleblowers that came forward outside of the clearing and we learned in our own investigation senior advisers prepared and coached their staff before briefing you warning them about your behavior. did you know that yes or no? don't think me for the question. yes or no. >> no, congressman. >> they also shared stories about the fdic's staff known to cry after leaving meetings with you and that others described having to convert colleagues after interacting with you. no such stories were documented

about either chair. they found the staffers and from delivering news they feared would upset you and your reactions and did have a chilling effect on the open communications. so let me be very clear. if your staff are so upgraded to give you bad news and they delay telling you that news, it simply makes a bad situation even worse. you're the wrong person for the job to clean up this mess. the mission of the fdic is far too important and you are unwilling or unable to accept negative information. any delay of information getting to the chairman is a recipe for disaster. you can't deal with bad news, you are the wrong person for this job. one other important point. last time you were asked directly if you'd ever been the subject of an investigation and you said no then after some self

reflection after a break for boats and i believe a call from a reporter, you admitted you actually had just like today you were pursing your words. the report explained that the 2008 incident where you made a senior executive feel personally attacked alleges they felt embarrassed, humiliated, and you created a hostile environment. i would like to include a redacted copy of the management inquiry into the record. >> without objection. >> that person was updated key while you were vice chairman at the time and it's recently you just name dan fdic chairman's award for operational excellence after. so you named an award after the same woman you screamed out and the same woman that accused you of withholding information for being mess loyal to you. i hope this isn't a sick bruised

by her silence. and i'm going to use your own opening statement to close mine. on page two oh, well, page two you said that the misconduct for service last year, that is simply not true. this had been out there as innuendo and many other complaints but you also say you regret not having identified a deeper cultural issues that at c sooner. you created the culture. you created the culture they are and you are the wrong person for the job. you finish on page three, going on to page four, the core elements of your action plan outline provide one more support for victims is the first point, strengthen the process for the reporting and investigating complaints, number three, improving accountability for anyone who is found to engage in misconduct including through separation from t