FDIC Workplace Culture Under Review: Over 350 People Reach Out to Law Firm
The U.S. Federal Deposit Insurance Corporation (FDIC) is currently undergoing a comprehensive review of its workplace culture after allegations of persistent sexual harassment were made public last year. These allegations prompted over 350 individuals to reach out to Cleary Gottlieb, an outside law firm hired by the FDIC to conduct the review.
Background
In November of last year, The Wall Street Journal published a report highlighting interviews with more than 20 women who had quit their positions at the FDIC, citing a sexualized boys club atmosphere, widespread harassment, and misogynistic behavior among staff. The report sparked outrage on Capitol Hill, leading to calls for the resignation of FDIC Chair Martin Gruenberg.
In response to the allegations and public outcry, the FDIC announced the appointment of a two-person “special committee” to oversee the review of the agency’s workplace culture. The committee is comprised of Michael Hsu, an FDIC board member and acting U.S. Comptroller of the Currency, and Jonathan McKernan, a Republican member of the FDIC board. Cleary Gottlieb was chosen as the law firm to conduct the review.
Employee Engagement
According to a statement released by the special committee, more than 350 people have reached out to Cleary Gottlieb to share their experiences and contribute to the review process. The FDIC has waived confidentiality restrictions to allow employees to speak freely during the investigations, demonstrating a commitment to addressing the issue and fostering a supportive environment for those who choose to come forward.
Timeline and Additional Investigations
The special committee hopes to complete the review of the FDIC’s workplace culture in the second quarter of 2024. In addition to Cleary Gottlieb’s review, the FDIC Office of Inspector General (OIG) is conducting its own investigation, and several Republican lawmakers have announced their own probes into the matter. The OIG aims to evaluate the agency’s sexual harassment prevention program by the end of July and conduct a “special inquiry” into the handling of all forms of harassment and inappropriate behavior by FDIC leadership.
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Frequently Asked Questions
Q: What prompted the review of the FDIC workplace culture?
A: Allegations of persistent sexual harassment and a hostile work environment led to the review.
Q: How many people have reached out to the law firm conducting the review?
A: Over 350 individuals have contacted Cleary Gottlieb to share their experiences.
Q: When is the review expected to be completed?
A: The special committee hopes to complete the review in the second quarter of 2024.
Q: Are there any other investigations related to the FDIC workplace culture?
A: Yes, the FDIC Office of Inspector General (OIG) is conducting its own investigation, and Republican lawmakers have announced their own probes into the matter.
Q: Has confidentiality been waived for employees participating in the investigations?
A: Yes, the FDIC has waived confidentiality restrictions to allow employees to speak freely during the multiple investigations.
Conclusion
The review of the FDIC’s workplace culture is a significant step toward addressing the allegations of sexual harassment and fostering a more inclusive and respectful environment within the agency. With over 350 individuals coming forward to share their experiences, it is clear that there is a strong desire for change and accountability. The completion of the review, along with the ongoing investigations, will be crucial in implementing necessary reforms and ensuring a safer and more supportive workplace for all FDIC employees.
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