FDIC watchdog planning ‘special inquiry’ on agency leadership, sexual harassment

By Douglas Gillison

(Reuters) -A watchdog overseeing the U.S. Federal Deposit Insurance coverage Corp will conduct a “particular inquiry” into to how the financial institution regulator’s management has dealt with complaints about sexual harassment and different inappropriate conduct, a consultant for the watchdog mentioned on Tuesday.

A “new analysis mission” will even evaluate FDIC reform efforts since a 2020 investigation discovered its dealing with of sexual harassment complaints was poor, in accordance with Caitlin Savino, spokesperson for the FDIC Workplace of Inspector Basic.

Beforehand, FDIC officers mentioned the company had happy suggestions from that investigation. Company representatives didn’t instantly reply to a request for remark.

The most recent investigation will deal with FDIC management, which provides to turmoil surrounding Chair Martin Gruenberg, who this month confronted requires his resignation from Republican lawmakers following a Wall Road Journal report.

In a sequence of stories, the newspaper cited a poisonous tradition of misogyny and discrimination among the many company’s male-dominated employees in alleged incidents stretching again greater than a decade.

The working circumstances prompted quite a few ladies to stop, which lawmakers mentioned raised questions on whether or not FDIC supervision’s effectiveness was struggling in gentle of main financial institution failures this yr.

Gruenberg has expressed private alarm on the accounts and vowed to deal with the matter as a high company precedence.

This month, the FDIC’s board of administrators introduced {that a} bipartisan particular committee not involving Gruenberg would oversee the company’s personal impartial evaluate of its office tradition.

Republican board members had insisted that Gruenberg recuse himself from the evaluate. Republican lawmakers on the Home Monetary Providers Committee have introduced the beginning of a “rigorous” congressional probe into the matter.

(Reporting by Douglas Gillison; modifying by Franklin Paul, Jonathan Oatis and David Gregorio)

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