Over 350 People Contact Law Firm Reviewing FDIC Workplace Culture

More than 350 people have contacted an outside law firm reviewing workplace culture at the U.S. Federal Deposit Insurance Corporation in the wake of media reporting last year on allegations of persistent sexual harassment, top agency officials said on Thursday.

The agency in November announced the review after The Wall Street Journal cited interviews with more than 20 women who had quit, alleging the FDIC had failed to address a sexualized boys club atmosphere, widespread harassment and misogynist behavior among staff.

The reporting prompted outrage on Capitol Hill, including calls for the resignation of FDIC Chair Martin Gruenberg, and has spurred two other announced probes by Republican lawmakers and the FDIC Office of Inspector General (OIG).

Gruenberg has expressed dismay and said addressing the problem is a top priority.

“More than 350 people have contacted Cleary Gottlieb,” the two-person “special committee” of the FDIC board tasked with overseeing the review said in Thursday’s statement, referring to the law firm chosen to conduct the review.

The committee comprises Michael Hsu, an FDIC board member and acting U.S. Comptroller of the Currency, and Jonathan McKernan, a Republican member of the FDIC board.

The statement also said the agency had waived confidentiality restrictions to allow employees to speak freely during the multiple investigations.

“The Special Committee recognizes it can be difficult for some to share their stories and appreciates and supports those who have chosen to do so,” the statement said.

The committee said it hoped to complete the review in the second quarter of 2024.

According to the FDIC OIG, that organization hopes to complete an evaluation of the agency’s sexual harassment prevention program by the end of July and a “special inquiry” into how FDIC leadership’s handling of all forms of harassment and inappropriate behavior.