FDIC Announces Special Committee to Review Workplace Culture and Sexual Harassment Allegations
The U.S. Federal Deposit Insurance Corporation (FDIC) revealed on Tuesday that a special committee will be appointed to oversee a thorough review of alleged toxic workplace culture and sexual harassment. This announcement comes in the wake of recent reports in the Wall Street Journal, signaling a moment of reckoning for the top banking regulator.
The FDIC’s board of directors released a statement in support of taking all necessary actions to identify and address the root cause of the problem and promote accountability. This declaration follows a series of interviews with over 20 women who resigned from the agency, as documented by the Wall Street Journal. The report revealed that the FDIC had failed to eliminate widespread harassment and misogynist behavior among its staff. Moreover, FDIC Chair Martin Gruenberg has been accused of bullying and leniency towards cases of misconduct.
The allegations have sparked widespread concern, leading Republican lawmakers to call for Gruenberg’s resignation. In response, Gruenberg has expressed sorrow and pledged to prioritize the resolution of these issues.
The special committee tasked with overseeing the review will be co-chaired by two FDIC board members, including Acting Comptroller of the Currency Michael Hsu and board member Jonathan McKernan. This bipartisan leadership underscores the gravity of the situation.
Last week, demands for Gruenberg to recuse himself from overseeing the review were made by McKernan and FDIC Vice Chair Travis Hill. In a statement on Tuesday, Hill emphasized the unanimous measures taken by the board to ensure the review’s independence.
This turmoil was further exemplified by the abrupt cancellation of a scheduled board meeting, which was to coincide with the demands for recusal. A board resolution has since been put in place to restrict the ability of FDIC management and board members not involved in the special committee from influencing the review process.
These recent developments reflect the agency’s commitment to addressing the significant concerns raised and instituting necessary changes. (Reporting by Douglas Gillison; Editing by Lisa Shumaker and Marguerita Choy)
