FDIC Chiefs Face Music for Toxic Work Culture

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) is facing major reforms after an independent review revealed a toxic workplace culture, complete with rampant sexual harassment and interpersonal misconduct.

At its meeting on June 20, the FDIC Board of Directors approved the creation of two new, independent offices: the Office of Professional Conduct (OPC) and the Office of Equal Employment Opportunity (OEEO). The OPC will intake, investigate, and report on complaints of harassment, interpersonal misconduct, and retaliation, while the OEEO will handle complaints of discrimination and retaliation under the laws enforced by the Equal Employment Opportunity Commission.

Both offices will utilize independent third-party investigators and will report directly to the Board. A Director for each office will be appointed through a competitive hiring process, with job announcements published to USAJobs.gov.

The FDIC also issued two requests for proposals (RFPs) to retain firms to provide crucial support and insight into the agency’s work, as recommended in the Special Review Committee report. The Independent Transformation Monitor will monitor and audit all recommendations to improve agency culture, policies, procedures, and structures, while the Expert Third-Party will advise on those efforts.

The agency reported progress on several other key recommendations, including the development of an Anti-Retaliation Policy and a separate Anti-Fraternization Policy. These draft policies will be solicited for employee input beginning next week, with the FDIC committed to completing training for all employees by the end of the year.

The FDIC has already completed 24 training sessions for 1,741 employees, with a focus on anti-harassment training for all employees, including senior management and supervisors. The agency is taking steps to ensure a safe and respectful work environment for all employees.

The reforms are a major step forward for the FDIC, which has faced criticism for its handling of workplace culture issues in the past. The agency is committed to transparency and accountability, and is working to create a positive and inclusive work environment.

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