Ernst Demands FDIC IG Investigate More Than 500 Allegations of Harassment
One in ten FDIC employees reported some form of misconduct.
WASHINGTON – After a report exposed the pervasive culture of harassment and other egregious behavior at the Federal Deposit Insurance Corporation (FDIC), U.S. Senator Joni Ernst (R-Iowa) is leading five of her colleagues in demanding the Inspector General (IG) investigate every single one of the more than 500 allegations of misconduct.
The senators blasted the agency for allowing a toxic culture to run rampant and urged the FDIC IG to right these wrongs by delivering justice.
“The independent review Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb) conducted, released in April 2024, documented over 500 allegations of harassment and other egregious behavior, with one in ten FDIC employees reporting some form of misconduct, including from senior agency leadership. This should have triggered immediate action. Instead, there has been a shocking lack of urgency, and victims continue to suffer while justice is delayed,” wrote the senators.
“Further, by focusing solely on external investigations of senior leadership, the FDIC Board has effectively abandoned an untold number of alleged victims whose allegations are against other employees within the agency. Every individual—regardless of their position within the agency—deserves justice, and it is your obligation as the Inspector General to ensure each allegation is fully investigated,” the senators continued.
Click here to read the full letter.
Background:
Following reports of sexual harassment and discrimination at the FDIC, Ernst was one of the first senators to call for FDIC Chair Martin Gruenberg’s resignation. In November 2023, she followed up by conducting critical oversight of this behavior at the FDIC and demanding any evidence of criminal wrongdoing by agency employees be turned over to the Department of Justice and local law enforcement for potential prosecution.
After a third-party investigation into the FDIC’s workplace culture, Ernst called for real consequences and the Department of Justice to investigate the agency from top to bottom. Even after this report, the Biden administration refused to immediately remove FDIC Chair Gruenberg.
To empower current and former FDIC employees who experienced discrimination, Senator Ernst introduced the FDIC Discrimination Relief Act to allow FDIC employees between 2015 and 2023 to sue the agency and allow victims to seek appropriate relief.
In April 2024, Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb), the firm hired to investigate FDIC’s workplace issues, released its report documenting over 500 allegations of harassment and other egregious behavior and revealed one in ten FDIC employees reported some form of misconduct.
However, Cleary Gottlieb was precluded from directly investigating claims of misconduct to hold perpetrators accountable, instead focusing on policies and shortfalls giving rise to the culture.
###
