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Politico
POLITICO
28 Nov 2023
Jasper Goodman


NextImg:FDIC watchdog to investigate workplace misconduct

The FDIC’s inspector general is launching a pair of inquiries related to workplace misconduct at the agency, adding new scrutiny on the banking regulator following reports that it has long fostered a toxic work environment.

The inspector general’s office will conduct a special inquiry “to report on the leadership climate at the FDIC with regard to all forms of harassment and inappropriate behavior,” an IG spokesperson said. The watchdog will also review the FDIC’s sexual harassment prevention program.

The FDIC is now under investigation from at least three separate entities in response to a series of reports in the Wall Street Journal that outlined workplace misconduct allegations stretching back years. The FDIC initiated an independent investigation by the law firm BakerHostetler, and House Republicans are seeking interviews and documents from the agency.

FDIC Chair Martin Gruenberg is facing pressure to resign from some Republican senators over the reports, which also alleged that he ignored bad workplace behavior and is known for his temper.

The FDIC did not immediately respond to a request for comment.