The Wall Street Journal has broken a scandal involving the Federal Deposit Insurance Corporation. According to a report, working conditions at the FDIC are less than professional. The report was based on interviews with over 100 current and former FDIC employees, as well as legal filings. It was claimed that the FDIC fostered a “toxic atmosphere” failing to address allegations of sexual harassment. The organization employs over 10,000 permanent and temporary workers.
The Journal’s investigation identified alarming incidents, including a supervisor inviting staff to a strip club and male workers sending unsolicited nude pictures to their female colleagues. There were no subsequent job terminations following these activities. An FDIC spokesperson stated that the organization plans to review its policies on a routine basis, and is committed to creating a safe and respectful workplace.
The organization’s inspector general also criticized the FDIC’s handling of sexual harassment reports in 2020. There was reported to be no further incidents since that time. Key figures, such as supervisors Trevor McIntosh and Hien Nguyen, were found to have been involved in such activities mentioned in the report.
The FDIC’s hotel near Washington D.C. was also described as a “party hub” where workers engaged in inappropriate behavior. The FDIC responded warning that excessive drinking could lead to investigation and possible termination. More recently, the FDIC hired an independent agency to investigate the allegations.
This report comes at a time when the #MeToo movement is putting a spotlight on the banking industry, with other organizations coming under similar scrutiny.