FDIC Workplace Culture Under Review: Over 350 People Respond
More than 350 people have reached out to Cleary Gottlieb, an outside law firm tasked with reviewing the workplace culture at the U.S. Federal Deposit Insurance Corporation (FDIC) following allegations of sexual harassment. The review was initiated in response to media reporting last year, which shed light on persistent sexual harassment within the agency.
Background
In November, The Wall Street Journal published an article featuring interviews with over 20 women who had quit the FDIC, alleging that the agency had failed to address a sexualized boys club atmosphere, widespread harassment, and misogynistic behavior among staff. The report sparked outrage and led to calls for the resignation of FDIC Chair Martin Gruenberg. It also prompted two additional probes by Republican lawmakers and the FDIC Office of Inspector General.
The Review Process
The FDIC established a two-person “special committee” comprised of Michael Hsu, an FDIC board member and acting U.S. Comptroller of the Currency, and Jonathan McKernan, a Republican member of the FDIC board. Cleary Gottlieb, the chosen law firm, has been tasked with conducting the review.
The special committee stated that more than 350 individuals have contacted the law firm to share their experiences and provide insights. In an effort to encourage openness, the agency waived confidentiality restrictions, allowing employees to speak freely during the investigations.
The committee aims to complete the review by the second quarter of 2024, while the FDIC Office of Inspector General plans to conclude its evaluation of the FDIC’s sexual harassment prevention program by the end of July. The FDIC OIG will also conduct a “special inquiry” into how the agency’s leadership handles all forms of harassment and inappropriate behavior.
Importance of Addressing the Issue
FDIC Chair Martin Gruenberg has expressed his concern and prioritized addressing the problem. The agency recognizes the difficulty some employees may face in sharing their stories and appreciates those who have chosen to come forward. By conducting the review and allowing employees to speak openly, the FDIC aims to create a safe and inclusive workplace culture.
Frequently Asked Questions
Q: What prompted the review of FDIC workplace culture?
A: The review was initiated following media reporting on allegations of sexual harassment within the agency.
Q: How many people have reached out to the law firm conducting the review?
A: Over 350 individuals have contacted Cleary Gottlieb to share their experiences.
Q: When will the review be completed?
A: The special committee aims to complete the review by the second quarter of 2024.
Q: What other investigations are taking place?
A: Republican lawmakers and the FDIC Office of Inspector General have initiated separate probes into the FDIC’s workplace culture.
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