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A profound investigation into complaints lodged by employees of the Federal Deposit Insurance Corporation (FDIC) reveals an excoriating picture of a toxic working environment riddled with intimidation, discrimination, and sexual harassment. The revelations have resulted in subsequent calls for the resignation of the FDIC’s longstanding Chairman, Martin Gruenberg.
An outside review commenced in response to a Wall Street Journal exposé discovered repeated instances of misconduct within FDIC, the federal body charged with the safeguarding of American’s bank deposits. The assessment was conducted by the Cleary Gottlieb Steen & Hamilton law firm and pointed to degrading acts including strip club attendances, lewd messages, as well as rampant bullying and heavy drinking — all of which were largely neglected by the agency’s administration.
Authors of the review posited a “patriarchal, insular, and risk-averse culture”, which thrived within FDIC. A culture that permitted the misdemeanors to persist while displaying a disturbing propensity for victimizing the complainants with a deep-seated fear of retribution. The damning report, backed by over 500 employee complaints, exposed an unpalatable truth about the FDIC’s endemic issues ranging from sexual harassment to insidious discrimination.
Chairman Gruenberg, who has steered the FDIC for nearly two decades, came under fire for allegedly fostering this toxic environment. Despite not being directly implicated in the pervasive misconduct the report underscored a poignant point; culture ‘starts at the top.’ A message the chairman seems to acknowledge with his apology to the harassed and mistreated employees, vowing to enforce the recommendations from the review.
However, Gruenberg’s contrition might be too little too late, as criticisms rise. Rep. Patrick McHenry (R-N.C), Chair of the House Financial Services Committee, has urged Gruenberg’s resignation, stating that “new leadership is needed.” The Senator of Iowa, Joni Ernst, echoing McHenry’s sentiments, demanded a top-to-bottom investigation and complete eradication of the existing leadership.
Information Box:
– FDIC stands for the Federal Deposit Insurance Corporation. It was created in 1933 to maintain public confidence and stability in the U.S. financial system.
– Over 500 FDIC employees came forward with complaints relating to toxic workplace conduct.
– Martin Gruenberg has served as FDIC chairman for nearly two decades, with ten years in this role.
– Rep. Patrick McHenry (R-N.C.), senator Joni Ernst (R-Iowa), and several others have called for Gruenberg’s resignation.
– The investigation into the FDIC was triggered by a Wall Street Journal exposé released last autumn.
References:
1: NPR – Toxic culture is the norm at the FDIC.
2: The Hill – Revelations from the FDIC report on sexual harassment, toxic workplace.
3: Senator Joni Ernst Press Release – FDIC Misconduct Must Be Fully Prosecuted, Top to Bottom.