WASHINGTON, D.C. – The Federal Deposit Insurance Corporation (FDIC) has come under scrutiny after an outside review uncovered a toxic workplace culture within the agency. The investigation revealed numerous complaints of sexual harassment, discrimination, and other misconduct that had been largely overlooked by the management of the organization responsible for protecting American bank deposits.

The report found that the FDIC’s “patriarchal, insular, and risk-averse culture” had allowed such behavior to persist, with employees feeling discouraged from reporting incidents due to a widespread fear of retaliation. Chairman Martin Gruenberg issued an apology to those affected by the harassment and mistreatment and pledged to implement the recommendations put forth by the external review, including a cultural transformation, enhanced victim protection efforts, and increased accountability for leadership.

Despite Gruenberg’s apologies and promises of change, doubts linger regarding his ability to lead the necessary reforms. The report raised concerns about Gruenberg’s tenure at the FDIC, highlighting his reputation for losing his temper and questioning his role in fostering a culture where such misconduct could thrive. Calls for his resignation have been made, with Rep. Patrick McHenry, R-N.C., chair of the House Financial Services Committee, asserting that new leadership is essential to address the issues outlined in the report.

The review also revealed that wrongdoers within the FDIC were rarely held accountable, often being transferred or even promoted instead of facing consequences for their actions. The report criticized the agency’s response to interpersonal misconduct, noting a pattern of “pay, promote, or move them” in handling such situations. As more than 500 FDIC employees came forward to report misconduct, the need for a comprehensive overhaul of the agency’s culture and practices is evident to ensure a safe and inclusive workplace environment for all.