FDIC Establishes Committee to Oversee Workplace Review

The Federal Deposit Insurance Corporation (FDIC) has created a special committee to oversee an independent third–party review of the agency’s workplace culture.

The Wall Street Journal, citing interviews with over 20 women who had quit the regulator, published allegations it had failed to eliminate a widespread harassment and misogynistic behavior, creating a toxic work culture.

FDIC board has appointed directors Jonathan McKernan, board member, and Michael J. Hsu, acting comptroller of the currency, to co–chair the special committee.

The co-chairs may appoint up to three additional non-voting members, likely from outside the FDIC, to join the special committee to advise and promote a diversity of views.

It said the review would be fully independent and those conducting it will report directly and exclusively to the special committee.

In a statement FDIC said: “All employees at the FDIC need to feel safe and able to speak out if they are subject to, witness or encounter inappropriate behavior in the workplace. Sexual harassment, discrimination, and other misconduct are totally unacceptable and have no place at the FDIC.

“This is a top priority for the FDIC board members. While this important work is underway, we recognize and appreciate the nearly 6,000 professionals who work at the FDIC, advancing its important mission of maintaining the stability and public confidence in the nation’s financial system.”

FDIC chair Martin Gruenberg has been under pressure to resign from his role since the allegations were published last week. As chairman, he took responsibility for the workplace culture at the agency in a video to staff.

Gruenberg delivered a statement to Congress last week and said: “I am personally disturbed and deeply troubled by [the Wall Street Journal’s] report. The FDIC is conducting a comprehensive review, including engaging an independent third party, to ensure we understand the nature of these issues and take all appropriate actions to address them.”