Agency OIG weighs in on issues related to sexual harassment at FDIC, months after independent report

An effective sexual harassment prevention program that facilitates the reporting of sexual harassment misconduct allegations has not been implemented by the federal bank deposit insurance agency, according to a report made public Thursday by the agency’s inspector general.

The FDIC’s Office of Inspector General (OIG) said the agency has “not always investigated and addressed allegations of sexual harassment promptly and effectively.”

The report followed an extensive review of allegations of sexual harassment at the agency by an outside investigator earlier this year – and led to agency Board Chairman Martin Gruenberg to announce his resignation once a successor was Senate confirmed.

“We found that FDIC leadership at several levels has not demonstrated sufficient commitment to, and accountability for, the AHP; has not implemented an effective program structure or dedicated sufficient resources to the program; does not have an effective system for tracking, addressing, and documenting allegations; has not established adequate complaint procedures or an adequate AHP policy; and has not provided sufficient training to its supervisors and staff,” the report states.

The OIG indicated that those things occurred “because the FDIC has not sustained many program improvements that were initiated as a result of our prior 2020 evaluation. As a result, the FDIC is experiencing an environment of distrust, and many employees do not feel comfortable reporting sexual harassment at the FDIC or are afraid of reporting for fear of retaliation. The FDIC has developed and begun implementing an Action Plan for a Safe, Fair, and Inclusive Work Environment that includes eight action areas described in this report.”

FDIC OIG report: The FDIC’s Sexual Harassment Prevention Program