The Federal Deposit Insurance Corporation (FDIC) is reeling from a damning independent report that revealed a deeply troubling culture. Women in a field office endured their supervisor’s inappropriate comments about their bodies and sex life. An examiner received an unsolicited explicit photo from a senior colleague, only to be warned by others to steer clear of him due to his reputation. A supervisor mocked an employee with a disability by calling them “Pirate McNasty.” These shocking instances, among many others, expose an FDIC that has recklessly abandoned its duty to shield employees from harassment and discrimination.
The report describes the FDIC’s culture as “misogynistic,” “patriarchal,” and “insular,” with a pervasive fear of retaliation among employees. This environment is intolerable, especially within a federal agency responsible for maintaining public confidence in our financial system.
As a woman who represented California in Congress for 15 years, I am deeply troubled by these findings and the Biden administration’s lack of decisive action. I have been a vocal supporter of the “Me Too” movement and have advocated for policy changes to address sexual harassment and assault. While serving, I also endured years of suggestive comments from a fellow member, and it pains me to see this behavior condoned for so long elsewhere in the government. The administration’s failure to swiftly and resolutely address these serious issues is unacceptable. The report’s revelations demand comprehensive investigations and immediate reforms to rebuild trust in the Federal Deposit Insurance Corporation (FDIC).
Chairman Martin Gruenberg, who has been at the center of this crisis, has indicated he will resign once a successor is appointed. While the resignation is a necessary step, he needs to step down immediately. The selection of a new leader must be expedited, and this individual must address the deep-rooted issues within the FDIC. The new leader must guide the agency through this essential cultural transformation. Gruenberg’s history of temperamental behavior and his role in perpetuating the current culture further underscore the need for new leadership.
Senior executives at the FDIC knew of multiple complaints yet failed to act. This neglect includes not only harassment but also discrimination and vindictive conduct. The absence of accountability at the highest levels has eroded employee trust and compromised the agency’s effectiveness. According to the report, of the 92 harassment complaints made through the FDIC’s Anti-Harassment Program from 2015 to 2023, not even one resulted in removal or significant discipline beyond a suspension.
Lawmakers across the political spectrum are rightfully livid and have called for accountability. However, the FDIC’s leadership has consistently opted to relocate offenders rather than discipline them appropriately. This approach has perpetuated an inexcusable environment where employees, particularly those from underrepresented groups, are marginalized and silenced. The report underscored how many FDIC employees fear retribution and distrust the agency’s reporting and investigative processes.
Despite the severity of these findings and the clear need for swift action, the Biden administration has not been up to the task. The brazen apathy to resolving the FDIC’s systemic issues is disappointing. President Biden’s Day One promise to dismiss those who treat colleagues with disrespect is emptier than ever.
The president must take immediate action to reform the FDIC’s workplace culture, and the urgency to implement the report’s recommendations cannot be exaggerated. Key steps include appointing a transformation monitor to oversee and guide cultural changes, enhancing training programs to better educate employees on proper conduct, and establishing an independent hotline for reporting misconduct without fear of reprisal. Leadership must be held accountable for maintaining a safe and respectful work environment.
The FDIC is vital to our financial system, and its employees deserve a safe and respectful workplace. The public outrage over this report should prompt the Biden administration to act decisively, and with alacrity. We must demand accountability and swift action to correct these wrongs. Failing to do so would betray our nation’s values and the dedicated public servants who uphold them every day.
