Given a precarious economy and teetering conditions in some sectors of the banking industry, the FDIC has serious work to do. But it is hard to believe the agency can act effectively when it apparently doesn’t even know how to treat its employees. The mid-November articles in the Wall Street Journal detailing a workplace culture of sexual harassment, alcohol abuse, intimidation and discrimination warrant outrage on so many levels.
The FDIC needs to credibly demonstrate its determination to get its house in order, which I believe has to start with the prompt suspension of its leader, Chair Martin Gruenberg. Mandated administrative leave or something similar for the chair during the review process would send a message about the urgency of the situation; allowing Gruenberg to work during the review sends the message that it is business as usual at the FDIC.
No bank board would tolerate the kind of frat house behavior that was described in the WSJ series. Customers and employees would demand change. My sense is, the private industry workplace has made a lot of progress in the last couple of decades. But apparently there is still a lot more progress to be made in the realm of government work.
When asked about sexual harassment, one of the WSJ articles quoted a high-ranking FDIC official saying the number of incidents at the FDIC is well below the government average. That’s a deafening statement about the pervasiveness of sexual harassment in the ranks of government agencies. I challenge the FDIC to get its act together and pave the way for a better workplace across ALL government agencies. It is a process that could take years, but I challenge the FDIC to take this on beginning today.
Words like “teamwork,” “collaboration” and “cooperation” get thrown around a lot in today’s workplace, so much so that we take them for granted. But even the most basic rules for human interaction in the workplace need to be revisited frequently. People should be trained, reminded and encouraged to treat all those around them — colleagues and customers alike — with respect and dignity. Lessons we learned in kindergarten, such as treating those around us as we would like to be treated, need to be reinforced — not ignored because we assume they are obvious.
Gruenberg does not appear ready to resign, nor are officials in Congress and the White House likely to push him out, believing work on new capital rules is too important to risk delay. Funny how tepid leaders alway find reasons to sweep these kinds of things under the rug. Bankers, who fund the FDIC, and the public, who depend on a well-functioning banking system, deserve better.