500 Individuals evidence Discrimination, Sexual Harassment At FDIC In fresh 200-Page Report

Authorized by Andrew Moran via The Epoch Times,

The national Deposit Insurance (FDIC) failed to supply its employees a safe workplace free from “sexual harassment, discrimination, and another interpersonal misconduct,” a fresh study released on Tuesday concluded.

Martin Gruenberg, president of the national Deposit Insurance corp (FDIC), testifies before the home Financial Services Committee in Washington on Nov. 15, 2023. (Madalina Vasiliu/The Epoch Times)

The more than 200-page report, produced by law companies Cleary Gottlieb Steen & Hamilton, was ordered by the bank regulator. The independent review was overseen by the peculiar Committee of the FDIC Board of Directors after The Wall Street diary published scathing reports identifying an nonsubjective work climate and misogynistic culture determined as a “sexualized boys’ club environment.”

More than 500 individuals recounted their experiences of discrimination, sexual harassment, and “other interpersonal misconduct” they end up with at the FDIC.

Heads of field and regional offices managed their offices like “fiefdoms” while commissioned bank experts “controlled the destinies of junior experts,” the study exploited.

“This who reported expressed feat, sadness, and anger at what they had to endure,” the study is set.

“Many had never reported their experiences to any before, while others who had reported internally were left disappointed by the FDIC’s response.”

In 1 example, a female examiner received a photograph of a elder FDIC examiner’s private parts and was recommended by others to “stay distant from his due to the fact that he had a ’reputation.’

One employer noted for her safety after a co-worker stuck her and repeatedly shared “unwelcome sexualized text messages that feature partially bare female engaging in sexual acts.”

Women in a field office exploited that their supervisor regularly talked about their breakfasts, legs, and sex life.

Others noted that colleges and supervisors would mock personnel with disabilities, calling 1 “Pirate McNasty,” and demoralize workers from underrepresented groups by telling them they were “token” employees covered to fill quotas.

“These incidents, and many others like them, did not happen in a vacuum,” the study was set. “They arose within a workplace culture that is ’misogynistic,’‘patriarchal, ’insular, ’and ’outdated’—a ’good ol’ boys’ club where favourite is common, cars are surrounded around managers, and elder executives with well-known reputations for parking romanticist relations with subordinates enjoy long careers without any appropriate concern.”

The investment besides uncovered prevalent retalization against workers who combined about the misconduct, which helped foster a toxic work environment.

“Employees are not included to supply feedback and suggestions up the line, in partial if it is bad news,” one witness said.

“In fact, employees, specified as myself, have been retaliated against for providing suggestions for improvement after having been requested for specified feedback.”

Others, according to the report, were unsure or did not know how to study companies.

‘Very sorry’

Mr. Gruenberg told agency staff that the study presented “a sobering look inside our workplace” and expressed that he was “very sorry” for overseeing a hostile environment.

“I want to besides thank everyone who shared their experiences through this process. I know that doing so was difficult,’ The FDIC chief said. “To anyone who experienced sexual halassment or another misconduct at the FDIC, I again want to express how very sorry I am. I besides want to apologize for any shortcomings on my part.”

“As Chairman, I am eventual liable for everything that happens at our agency, including our workplace culture,” he added.

Implementation “meaningful and sustained change” will not be easy, Mr. Gruenberg said to employers.

The national Deposit Insurance corp (FDIC) seal is shown outside its office in Washington on March 14, 2023. (Manuel Balce Cenelec/AP Photo)

The recommendations outlined in the study will be incorporated into the FDIC’s ongoing 13-page action plan. Additional, the FDIC is inactive actively uncovering a transformation monitor and independent third-party expert to aid adopt the peculiar Review Committee’s recommendations.

Special committee co-chair Jonathan McKernan called the study “an import first step” toward utilizing in change at the FDIC.

“Today’s study establishes the Urgent imperative of a cultural transformation at the FDIC led by these with the leadership capacity to effectate that change,” Mr. McKernan said in a statement. “Fostering an environment that promotes a safe, respecting, and inclusive workplace is fundamental to achieving the agency’s mission.”

An apology is not adequate for Patrick McHenry, president of the home Financial Services Committee, who requested Mr. Gruenberg’s resignation.

“It’s time for Chair Gruenberg to step aside. The independent study released present details his inexcusable behaviour and makes clear fresh leadership is needed at the FDIC,’ Mr. McHenry said in a statement.

He added that committee Republicans will guarantee the FDIC head and another elder leaders are “held accountable” for their actions.

Rep. Patrick McHenry (R-N.C.) Speaks to the press after gathering president Joe Biden to discuss the debt limit at the White home in Washington on May 22, 2023. (Madalina Vasiliu/The Epoch Times)

Clear Gottlieb Steen & Hamilton was not asked, nor did it determine, if Mr. Gruenberg and another individuals at the national agency should be removed or disciplined.

‘Toxic Atmosphere’ at FDIC

Late last year, The Wall Street diary published 2 in-depth reports. The first was “Strip Clubs, Lewd Photos and a Boozy Hotel: The Toxic Atmosphere at Bank Regulator FDIC,” and the second was “FDIC Chair, Known for Temper, Ignored Bad behaviour in Workplace.”

The article listed claims by employees, past and present, that buying, discrimination, and sexual misconduct were permanent at the FDIC.

Many cases of inappropriate conduct listed in the article were met with small or no disciplinary action.

Following the newspaper’s published investment, Mr. Gruenberg said he had been unaware of the allegations and related calls from Republicans to step down.

Later, the Wall Street diary reported that the FDIC chief maintained “a reputation for buying and for having an exploitable temper.” At least 1 tries to initiate against Mr. Gruenberg after berating a female employer while serving as the vice chairman.

Mr. Gruenberg told lawmakers at a legislature Banking Committee proceeding that he was “personally disturbed and profoundly troubled” by the article’s finding, adding that the agency launched a “comprehensive review” of the situation.

Following the report, respective Republican Senators requested his resignation over workplace misconduct allegations.

Sen. John Kennedy (R-La.) urged Mr. Gruenberg to step down so that “a fresh chair can reconstruct the professional culture at the FDIC that the American people anticipate from its institutions.”

In a Dec. 7 letter, Sens. Tim Scott (R-S.C.), Thom Tillis (R-N.C.), Cynthia Lummis (R-Wyo), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.) called the admissions “deeply discurbing and unacceptable at any workplace.”

“According to these reports, both you and your top deductions ‘have been active in decisions over high-level examples of alleged sexism, harassment, and rational discrimination in which the agency didn’t take a hard line with individuals accredited of misconduct,’ allowing the culture of harassment and discrimination to persist and flow,” the letter added.

The bombshell Wall Street diary reports came 3 years after the FDIC’s inspector general discovered multiple sexual harassment companies and issued more than a twelve recommendations to change the workplace culture.

Mr. Gruenberg joined the FDIC Board of Directors in August 2005. In 2011, then-President Barack Obama nominated him to a full five-year word as chairman. In 2022, president Joe Biden nominated Mr. Gruenberg to another term.

Should Mr. Gruenberg step down or be removed from his position, FDIC Vice Chair Travis Hill would take over, and the board would be divided between Republicans and Democrats.