An investigation into Mel Watt, the now-former head of the Federal Housing Finance Agency, concluded that he attempted to coerce an employee into an inappropriate relationship.
The agency’s inspector general found in a report published Friday that Watt, an Obama appointee who remained in place during the Trump administration, misused his position for personal benefit when he attempted to pressure a female employee into a relationship. That employee, Simone Grimes, has accused him of sexual harassment.
Watt repeatedly invited Grimes to meet him outside of work, and, according to recordings provided by Grimes, tried to get her into his apartment to discuss her career development. Watt, a former Democratic congressman from North Carolina, also told Grimes that he was attracted to her.
“There are no circumstances under which it is appropriate for the head of FHFA to induce a subordinate employee to meet with him alone, in his apartment, for a conversation in which he professes his attraction for that employee and holds out opportunities for the employee to serve in specific executive positions over which he exercises total control,” the inspector general report said.
The report also found that Watt was not fully candid with investigators.
Watt maintained that he did not commit sexual harassment, as he has since Grimes’ allegations became public, and claimed that the report was a “rush to judgment.” Watt was provided with a copy of the report in late November to allow him to respond to its allegations, though the report was not published until now.
“In my view, it’s time for me to ride off into the sunset because the standards have become so confused that it’s difficult to operate in them,” Watt, 73, told investigators.
He also said that the report is “both sexist and inconsistent with current standards of gender equality [and] is also inconsistent with the standard of equality I have been fighting for throughout my professional career.”
Joseph Otting, a federal bank regulator, is currently acting as FHFA director. President Trump’s nominee to replace Watt, Mark Calabria, is being considered by the Senate. The Senate Banking Committee held a nomination hearing for Calabria, among other nominees, on Thursday. Calabria currently serves as the chief economist for Vice President Mike Pence.
