FDIC to Conduct Third-Party Audit Following Report of ‘Sexualized’ Culture
The Federal Deposit Insurance Corp. (FDIC) has announced that it will be conducting an external audit of its workplace culture following allegations of a “sexualized” environment for its female employees. The decision comes in response to a recent Wall Street Journal (WSJ) report that shed light on a toxic atmosphere within the agency.
The WSJ Report and Allegations
The WSJ report, based on interviews with over 100 current and former FDIC employees, including more than 20 women who resigned, detailed incidents spanning over a decade. These incidents included excessive pressure to consume alcohol and unwelcome sexual advances.
One employee, Kelsi Foutz, shared her experience of a male colleague making inappropriate remarks about her during her training period. Foutz revealed that the colleague told her, “Obviously if I walked into this office and you were naked, I’d f— you right here.” Shockingly, Foutz did not file a complaint and described such behavior as “normal” and something she had to deal with.
FDIC Chairman’s Response
FDIC Chair Martin Gruenberg expressed his deep concern over these allegations and vowed to prioritize the safety and well-being of the agency’s employees. He emphasized that creating a safe environment where employees feel valued and respected is of utmost importance.
To address the situation, the FDIC has engaged the services of the law firm BakerHostetler to conduct a thorough and independent evaluation of the allegations and the overall workplace culture within the next 90 days.
Frequently Asked Questions
1. What prompted the FDIC to launch an external audit?
The FDIC initiated the external audit in response to a Wall Street Journal report that exposed allegations of a “sexualized” culture within the agency. The report detailed incidents spanning over a decade, including excessive pressure to consume alcohol and unwelcome sexual advances.
2. Who will be conducting the audit?
The FDIC has engaged the law firm BakerHostetler to conduct the independent evaluation of the allegations and the agency’s workplace culture.
3. What is the timeframe for the audit?
The audit is expected to be completed within the next 90 days.
4. What action has the FDIC taken in response to the allegations?
In addition to launching the external audit, the FDIC has expressed its commitment to fostering a diverse and inclusive workplace. The agency has various training, reporting, and oversight programs in place to create a safe and equitable environment for its employees. When misconduct is identified, appropriate action is taken.
5. Is this the first time such allegations have surfaced within the FDIC?
No, these allegations span back as far as 2010. The FDIC has faced criticism in the past regarding its sexual harassment policies, with an inspector general’s report in 2018 highlighting failures in preventing such behavior. The agency has acknowledged the need for improvement and has taken steps to address the issue.
The FDIC’s commitment to transparency and accountability led to the decision to conduct an external audit, which will be overseen by the agency’s Board to ensure a thorough and holistic review. The goal is to create a professional work environment and provide a safe and inclusive space for all employees.
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