President Joe Biden Appoints Jennifer Fain as New FDIC IG
President Joe Biden has appointed Jennifer Fain, a former deputy inspector general at the Export-Import Bank, to lead the inspector general’s office at the Federal Deposit Insurance Corporation (FDIC). The appointment comes at a crucial time for the FDIC, as the agency is currently undergoing an investigation into allegations of sexual harassment and misconduct by former employees.
FDIC Under Investigation for Sexual Harassment Allegations
A detailed report in The Wall Street Journal in November raised serious concerns about the workplace culture at the FDIC. The article accused FDIC Chair Martin Gruenberg of turning a blind eye to a toxic culture and fostering a “boys’ club environment” that marginalized women. Following the publication of the report, Gruenberg issued an apology in a video seen by the Journal and took responsibility for the culture.
However, lawmakers were not satisfied with the apology and demanded Gruenberg’s resignation for enabling a toxic work environment. The FDIC’s Office of Inspector General (OIG) announced plans to conduct a “special inquiry” into how the agency’s leadership handled complaints of sexual and other inappropriate conduct. The OIG also intends to review the FDIC’s sexual harassment program and assess the agency’s response to a previous OIG report that highlighted shortcomings in handling complaints.
The FDIC board members responded by establishing a review committee to oversee an independent third-party investigation of the agency’s workplace culture. Jonathan McKernan and Michael Hsu were appointed as the committee’s leaders. Gruenberg, the FDIC Chair, has recused himself from overseeing the review. The committee has engaged the law firm Cleary Gottlieb Steen & Hamilton to examine the allegations of sexual harassment and misconduct.
Jennifer Fain’s Background and Appointment
Jennifer Fain is no stranger to the world of inspector general offices. With over 22 years of experience in the IG community, Fain brings a wealth of expertise to her new role as the inspector general of the FDIC. She previously served as the deputy inspector general for the Export-Import Bank of the U.S. within the OIG, where she provided independent oversight of the bank’s operations. Fain also served as the acting inspector general for three years, leading a team of auditors, investigators, and analysts.
In addition to her experience at the Export-Import Bank, Fain held leadership positions in audit, inspection, and evaluation offices at the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development. President Biden nominated Fain for the role of FDIC inspector general in September, and she was confirmed by the Senate in December.
Frequently Asked Questions (FAQs)
| Question | Answer |
|---|---|
| Why did President Biden appoint Jennifer Fain? | President Biden appointed Jennifer Fain to lead the inspector general’s office at the FDIC due to her extensive experience and expertise in the inspector general community. Her appointment comes at a time when the FDIC is undergoing an investigation into allegations of sexual harassment and misconduct. |
| What is the FDIC’s Office of Inspector General planning to investigate? | The FDIC’s Office of Inspector General plans to conduct a “special inquiry” into how the agency’s leadership handled complaints of sexual and other inappropriate conduct. The OIG will also review the FDIC’s sexual harassment program and assess the agency’s response to a previous OIG report on its handling of complaints. |
| Who are the leaders of the review committee overseeing the investigation? | The review committee overseeing the independent third-party investigation of the FDIC’s workplace culture is headed by board members Jonathan McKernan and Michael Hsu. FDIC Chair Martin Gruenberg has recused himself from overseeing the review. |
| What is the role of the law firm Cleary Gottlieb Steen & Hamilton in the investigation? | The review committee has engaged the law firm Cleary Gottlieb Steen & Hamilton to examine the allegations of sexual harassment and misconduct. The law firm will play a crucial role in investigating the claims and providing an independent assessment of the situation at the FDIC. |
As the FDIC addresses the ongoing investigation into sexual harassment allegations, the appointment of Jennifer Fain as the new FDIC inspector general brings a fresh perspective and a commitment to addressing the issues at hand. With her extensive experience in the IG community, Fain is well-equipped to lead the inspector general’s office and ensure transparency and accountability within the FDIC.
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