In a letter to Federal Deposit Insurance Corporation (FDIC) Acting Inspector General Tyler Smith, U.S. Sen. Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing and Urban Affairs, and nearly a dozen members of the Senate Banking and Housing Committee demanded an independent investigation into reports alleging the agency has failed to address a toxic culture of sexual harassment and misconduct, discrimination and misogyny. The formal request was sent in response to allegations raised in several media reports over recent years.
Leading off their concerns with a statement about the integrity of FDIC, they expressed disappointment over systemic issues undermining its effectiveness. "The FDIC is charged with protecting the stability and public confidence of our banking system. The FDIC’s employees play a critical role in ensuring our financial system operates in a safe and sound manner. It is imperative that the FDIC recruit and retain talented public servants and create a safe and professional work environment. Allowing employees that have engaged in misconduct to stay on the job, while losing talented employees because of the failure to meaningfully address these systemic issues, compromises public trust in the FDIC. The issues raised in these reports require immediate attention," the senators said in the letter to Smith.
The correspondence further detailed specific incidents mentioned in a Wall Street Journal article which spurred their request for an investigation. According to the letter, dated Nov. 17, the senators cited a Nov. 13, 2023 Wall Street Journal report on female FDIC examiners being subjected to inappropriate behavior by male examiners and supervisors. The behavior has forced some female examiners to leave the agency; or, because they fear retaliation, some do not report it. The letter also pointed out reports alleging that FDIC leadership is responsible for a "hostile and combative work environment for employees" that goes back at least 15 years, noting that Smith's office had found "weaknesses" in the agency's sexual harassment policies and procedures.
They closed their communication by highlighting the importance of an internal investigation to rectify these systemic problems. "Your office’s investigation into this matter is vital to fully understanding the longstanding failings at the FDIC and will be important in helping the FDIC make the necessary changes to the culture of this agency," they said in the letter to Smith.