FDIC issues third-party report on misconduct at the agency

The FDIC released a report from an independent third-party review of allegations of sexual harassment and other misconduct at the agency, management’s response, and the FDIC’s workplace culture.

Report Details: Conducted by Cleary Gottlieb and overseen by a special committee of the FDIC board of directors, the independent review:

• Found the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct.

• Found management’s responses to allegations of misconduct, as well as the culture and conditions that gave rise to them, have been insufficient and ineffective.

• Included recommendations for protecting victims, transforming the agency culture, holding leadership accountable, improving transparency, and more.

• Was based on the experiences of more than 500 current and former FDIC employees.

Gruenberg Message: In a message to FDIC employees, FDIC Chairman Martin Gruenberg said he was sorry to anyone who experienced sexual harassment or other misconduct at the FDIC, apologized for shortcomings on his part, said he is ultimately responsible for everything that happens at the agency, and pledged to implement the recommendations contained in the report.

Calls for Resignation: Several members of Congress—including House Financial Services Committee Chairman Patrick McHenry (R-N.C.)—called for Gruenberg to resign. In its report, Cleary Gottlieb said it was not asked, nor did it assess, whether particular individuals within the FDIC, including the chairman, should be disciplined or removed.

Background: The FDIC board of directors in November unanimously approved the special committee and independent review following reports of misconduct at the agency.