The evaluation report on the sexual harassment scandal at the federal insurer of bank deposits was termed “among the most important” issued by the agency’s inspector general, it said Monday.
In its semiannual report to Congress for the period April 1-Sept. 30, the inspector general for the Federal Deposit Insurance Corp. (FDIC) said it told the deposit insurer in August that the FDIC “has not implemented an effective sexual harassment prevention program that facilitates the reporting of sexual harassment misconduct allegations and has not always investigated and addressed allegations of sexual harassment promptly and effectively.”
The watchdog for the FDIC also said that, in advance of its August report, it issued in May a “Management Advisory Memorandum.” The OIG told Congress that document “emphasized the need for the FDIC to keep the OIG apprised in a timely manner of any allegations of misconduct on the part of senior officials.”
The OIG also said it suggested improved communications with FDIC staff “to ensure they were informed about the OIG and the OIG Hotline as a means to report allegations of misconduct.”
The scandal has roiled the agency for more than a year, since allegations of sexual harassment at the agency erupted in November 2023. Since then, a special committee was established at the agency to tighten anti-harassment procedures and rules, and FDIC Board Chairman Martin Gruenberg has announced plans to resign from the agency on Jan. 19, the day before Donald Trump is inaugurated as president.
Gruenberg reportedly made the announcement in a message to FDIC employees. “Earlier today I informed the President that I will retire as Chairman and Member of the Board of Directors of the FDIC effective January 19, 2025,” Gruenberg wrote in the note sent Nov. 19.
FDIC Semiannual Report to the Congress, April 1-Sept. 30, 2024
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