Business

Toxic culture is the norm at the FDIC, leadership cited in report : NPR


Federal Deposit Insurance Corporation Chairman Martin Gruenberg apologized to employees Tuesday after an external review found a toxic work culture at the agency.

Saul Loeb/AFP via Getty Images


hide caption

toggle caption

Saul Loeb/AFP via Getty Images


Federal Deposit Insurance Corporation Chairman Martin Gruenberg apologized to employees Tuesday after an external review found a toxic work culture at the agency.

Saul Loeb/AFP via Getty Images

An external review of the Federal Deposit Insurance Corporation found a toxic workplace where hundreds of employees complained of sexual harassment, discrimination and other misconduct that was largely ignored by the agency’s leadership.

The investigation was ordered after a scathing article in the Wall Street Journal last fall that reported visits to strip clubs, lewd messages, excessive drinking and bullying within of the government agency responsible for protecting Americans’ bank deposits.

The report found that “a patriarchal, insular, and risk-averse culture” within the FDIC allowed misconduct to continue and that complaints were deterred by “a widespread fear of retaliation.”

Culture “starts at the top”

In a message to employees Tuesday, FDIC Chairman Martin Gruenberg apologized to those who were harassed and mistreated, and he promised to implement the external review’s recommendations. These include an agency-wide cultural transformation, efforts to protect victims, and a desire to hold leaders more accountable.

The report’s authors, however, question whether Gruenberg is the right person to make the necessary changes.

“While we do not view Chairman Gruenberg’s conduct as a root cause of sexual harassment and discrimination within the agency,” the report said, “as a number of FDIC employees have said speaking of President Gruenberg, culture” begins at the top. .'”

Calls to resign

The report notes that Gruenberg spent nearly two decades at the FDIC, including ten years as chairman, and has a reputation for losing his temper.

Rep. Patrick McHenry, R-N.C., who chairs the House Financial Services Committee, called on Gruenberg to resign.

“The independent report released today details his inexcusable behavior and makes clear that new leadership is needed,” McHenry said in a statement. “Republicans will ensure that Chairman Gruenberg and other senior FDIC leaders are held accountable.”

More than 500 FDIC employees contacted the law firm conducting the external review to report misconduct within the agency.

The study found that bad actors were rarely punished, but simply transferred or even promoted.

“The FDIC’s response to interpersonal misconduct is to ‘pay them, promote them, or move them,'” the report said.

News Source : www.npr.org
Gn bussni

Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
Back to top button