FDIC Bombshell: Independent Report Exposes Horrors of Workplace Misconduct

May 7, 2024

The Federal Deposit Insurance Corporation (FDIC) has been rocked by a stunning revelation following the release of an independent report on workplace misconduct. The report, conducted by Cleary Gottlieb and supervised by the FDIC’s Special Committee, exposes years of systemic sexual harassment, discrimination, and other interpersonal misconduct within the agency.

“For far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct,” reads the report. It further states that management’s responses to allegations of misconduct have been insufficient and ineffective.

The Special Committee chair, Jonathan McKernan, emphasized the urgency of cultural transformation within the FDIC: “Today’s report establishes the urgent imperative of a culture transformation at the FDIC led by those with the leadership capacity to effectuate that change.”

Over 500 current and former FDIC employees shared their experiences with Cleary Gottlieb, demonstrating exceptional bravery in coming forward. The Special Committee praised the thoroughness and independence of the review process, highlighting the professionalism of the Cleary Gottlieb team.

The report specifically states that Cleary Gottlieb was not asked to assess whether any specific individuals within the FDIC, including the Chairman, should be disciplined for alleged misconduct. Any such decisions are the responsibility of those with appropriate authority.