North Raleigh Today

A supervisor at the Federal Deposit Insurance Corp. (FDIC) in San Francisco invited employees to a strip club, while another supervisor in Denver engaged in a sexual relationship with a subordinate. The Denver supervisor disclosed details to other colleagues and encouraged the subordinate to consume whiskey during work hours. This conduct occurred within two FDIC offices, revealing an alarming pattern of inappropriate behavior among upper management.

The ongoing issues appear systemic within the FDIC, rather than isolated incidents. A longstanding toxic work environment at the FDIC, a prominent banking regulator in the nation, has prompted employees to depart from an agency they claim has tolerated and neglected to address inappropriate behavior, according to a Wall Street Journal investigation. The findings are based on interviews with FDIC employees, legal filings, union grievances, Equal Employment Opportunity complaints, emails, text messages, and other internal documents. Despite the broader cultural shift sparked by the #MeToo movement, focusing on sexual harassment and workplace sexism, the FDIC appears reluctant to enforce stringent disciplinary measures against managers facing accusations of misconduct as reported by employees.

Despite wider societal changes addressing these issues directly, a societal reckoning addressing sexual harassment, workplace sexism and the #MeToo movement has brought about transformations in workplaces over recent years. However, employees assert that the FDIC continues to exhibit reluctance in imposing severe discipline on managers facing accusations of misconduct according to an article by The Wall Street Journal. Numerous female examiners departed from the FDIC citing a sexualized 'boys' club' environment and perceived unequal opportunities compared their male counterparts according to interviews with over 100 current and former employees including more than 20 women who resigned. While traveling banks nationwide for regulatory assessments financial stability compliance male examiners openly discussed appearances their female colleagues A former female employee recounted instances where her male colleagues suggested that women needed use sex advance at FDIC accompanied by stares them.

Excessive drinking has become another concern within the FDIC culture. The agency fostered a culture of heavy drinking. The FDIC's 11-story hotel near Washington, utilized by out-of-town employees attending training, served as a hub for parties where individuals have reportedly vomited in the elevator and urinated off the roof following nights of excessive drinking. The revelry gave rise to an Instagram account that posted in 2021: "If you haven't puked off the roof, were you ever really a FIS?"—alluding to a bank examiner-in-training, according to article by The Wall Street Journal. Following the online publication of this article on Monday, FDIC Chairman Martin Gruenberg announced in a video sent to staff that, in response to the Wall Street Journal's investigation, the agency has enlisted services law firm BakerHostetler examine allegations harassment discrimination. Gruenberg stated that law firm would conduct comprehensive assessment necessary changes would be implemented based on their findings.