Elizabeth Warren circled wagons around embattled FDIC chief Martin Gruenberg

An investigation by law firm Cleary Gottlieb found an agency rife with sexual harassment, bullying, and discrimination, where complaints were ignored and offenders went unpunished. The findings have put pressure on Gruenberg, who has been a fixture at the FDIC since 2005, in rotating stints as its chair and a board member. The report found that Gruenberg contributed to a culture of bullying and that underlings, scared of being berated, were reluctant to bring him bad information.

That information breakdown has led some critics to tie Gruenberg’s temper to lapses at the FDIC last spring, when three regional banks failed and the agency was slow to seize them, spurring worries about a contagion that forced the government to guarantee deposits at two of the banks. Republican members of Congress and at least one Democrat have called on him to resign.

But Gruenberg, a progressive who has pushed tougher rules on Wall Street throughout his career, is key to a financial-regulation agenda that includes forcing banks to hold more capital, reining in bonuses, and intensifying merger reviews. If he were to be forced out of his role, the FDIC would be paralyzed, split evenly between Democratic and Republican board members and at least temporarily run by a Republican, Travis Hill.

“There’s plenty of blame to go around,” said Dennis Kelleher, of the progressive think tank Better Markets. “This is outrageous, but to attack the Democrat only, which has the inevitable result of stalling this important work, is so clearly partisan politics.”

(In a bit of good news for Warren, the Supreme Court this morning rejected a constitutional challenge that would have dismantled or gutted the CFPB. Warren first proposed the idea of a consumer-focused financial regulator in 2007 when she was a professor at Harvard, and was appointed by former President Barack Obama to create the agency after the global financial crisis.)