Over 350 Individuals Reach Out to Law Firm Investigating FDIC Workplace Culture – Reuters

More than 350 individuals have reached out to an external law firm conducting a review of workplace culture at the U.S. Federal Deposit Insurance Corporation (FDIC) following media reports last year that detailed claims of persistent sexual harassment, officials from the agency said on Thursday.

The FDIC initiated the review in November after an article highlighted allegations from over 20 former female employees who asserted that the agency failed to address a toxic atmosphere characterized by widespread harassment and misogynistic behavior.

The revelations sparked significant backlash on Capitol Hill, including demands for the resignation of FDIC Chair Martin Gruenberg, and prompted two additional investigations by Republican lawmakers and the FDIC’s Office of Inspector General (OIG).

Gruenberg has expressed concern over the situation and emphasized that tackling these issues is a top priority for the agency.

In a statement released Thursday, the FDIC’s special committee overseeing the review reported that over 350 individuals had contacted the law firm conducting the investigation. The committee is composed of Michael Hsu, an FDIC board member and acting U.S. Comptroller of the Currency, and Jonathan McKernan, a Republican member of the board.

The agency also announced it has lifted confidentiality restrictions to encourage employees to share their experiences freely throughout the various investigations.

“The Special Committee recognizes the challenges in sharing personal experiences and appreciates those who have come forward,” the statement stated.

The committee aims to finalize the review by the second quarter of 2024. Additionally, the FDIC OIG plans to complete its evaluation of the agency’s sexual harassment prevention efforts by the end of July, along with a special inquiry into how FDIC leadership has managed all forms of harassment and inappropriate behavior.