The FDIC has failed to implement an effective sexual harassment prevention program to facilitate the reporting of sexual misconduct allegations, according to a July 31 report from the agency’s Office of Inspector General.
The 101-page report was based on a survey of all FDIC employees about their experiences with sexual harassment from the spring of 2019 through Jan. 19, 2024. Of the approximately 6,200 agency employees, more than 2,800 responded. Of those, 191 or 7 percent said they had experienced sexual harassment at the FDIC.
Nearly half of employees who experienced sexual harassment and 51 percent of employees who observed such misconduct said they hadn’t reported the incidents out of fear of retaliation.
The FDIC “has not always investigated and addressed allegations of sexual harassment promptly and effectively,” according to the report. “As a result, the FDIC is experiencing an environment of distrust, and many employees do not feel comfortable reporting sexual harassment at the FDIC or are afraid of reporting for fear of retaliation.”
The FDIC has not instituted many of the anti-harassment program improvements called for following the Office of Inspector General’s 2020 evaluation, according to the report. Four years ago, the FDIC Inspector General recommended the agency improve its policies and procedures in response to sexual harassment misconduct allegations; promote a culture of zero tolerance against sexual misconduct; and ensure allegations are quickly investigated and resolved. The report also called for improving employee and supervisor training.
The OIG noted several deficiencies it sees in the current anti-harassment program:
- FDIC leadership at several levels has not demonstrated sufficient commitment and accountability to address misconduct.
- The agency has not had an effective system to track, address and document harassment allegations.
- The FDIC has not established an adequate anti-harassment policy or instituted complaint procedures.
OIG made two-dozen recommendations to improve the program, including updating and implementing the oversight plan; updating performance management and bonus criteria to prevent harassment; and implementing a mechanism to maintain corrective actions.
The FDIC plans to complete all corrective actions by March 31, 2025.
The report was released as the future of FDIC leadership remains in limbo following allegations of a toxic environment chronicled in a November 2023 Wall Street Journal article. The report chronicled numerous allegations of sexual harassment and other workplace misconduct at the FDIC. The report found the agency’s “patriarchal, misogynistic and insular culture” and “good-old-boys club” created the conditions for misconduct to flourish.
In May, New York City-based law firm Cleary Gottlieb found the FDIC failed to protect employees from sexual harassment, discrimination and other workplace misconduct. FDIC Chair Martin Gruenberg allegedly displayed an explosive temper at times, leading some staff to fear delivering bad news to him.
Following numerous calls for his resignation, Gruenberg announced in May that he would resign once his successor is confirmed. President Joe Biden has nominated Commodity Futures Trading Commission Chair Christy Goldsmith Romero for the position.
