FDIC Bosses Face Harassment Heat

WASHINTON D.C. – The Federal Deposit Insurance Corporation (FDIC) is in the crosshairs of a growing scandal, as allegations of harassment and unprofessional conduct rock the agency’s top ranks.

According to a statement from Vice Chairman Travis Hill, a special committee has been established to oversee an independent review of the FDIC’s workplace culture. The move comes after a week of conversations with current and former employees, who revealed a deeply troubling atmosphere of intimidation and fear.

Hill’s statement, released November 21, 2023, acknowledged the need for a truly independent review to encourage victims to come forward and for the results to be viewed credibly. The special committee, co-chaired by Directors McKernan and Hsu, will oversee a third-party review of the allegations.

The FDIC’s Board resolution, approved last night, includes provisions that restrict the ability of FDIC management and Board members not on the special committee to engage with or influence the review. Hill agreed to support the resolution, citing the inclusion of these provisions.

As the scandal deepens, employees are speaking out about the need for change. ‘Pride and trust always and continually need to be earned,’ Hill said. ‘Nobody is entitled to them.’ The statement is a stark reminder that the FDIC’s reputation is built on more than just its mission – it’s built on the trust of its employees and the public it serves.

The FDIC’s response to the allegations will be closely watched, as the agency grapples with the fallout from a scandal that threatens to undermine its very foundations. One thing is clear, however: the FDIC’s leaders must take immediate action to address the allegations and restore trust in the agency.