WASHINGTON, D.C. – After a report exposed the pervasive culture of harassment and other egregious behavior at the Federal Deposit Insurance Corporation (FDIC), Senator Rick Scott joined Senator Joni Ernst and four of their colleagues in demanding the Inspector General (IG) investigate every single one of the more than 500 allegations of misconduct. The senators blasted the agency for allowing a toxic culture to run rampant and urged the FDIC IG to right these wrongs by delivering justice.

The senators said, “The independent review Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb) conducted, released in April 2024, documented over 500 allegations of harassment and other egregious behavior, with one in ten FDIC employees reporting some form of misconduct, including from senior agency leadership. This should have triggered immediate action. Instead, there has been a shocking lack of urgency, and victims continue to suffer while justice is delayed.”

The senators continued, “Further, by focusing solely on external investigations of senior leadership, the FDIC Board has effectively abandoned an untold number of alleged victims whose allegations are against other employees within the agency. Every individual—regardless of their position within the agency—deserves justice, and it is your obligation as the Inspector General to ensure each allegation is fully investigated.”

Click HERE to read the full letter.

BACKGROUND:

Following reports of sexual harassment and discrimination at the FDIC, Senator Scott and Ernst were some of the first senators to call for FDIC Chair Martin Gruenberg’s resignation. In November 2023, he sent a letter conducting critical oversight of this behavior at the FDIC and demanded accountability.

In April 2024, Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb), the firm hired to investigate FDIC’s workplace issues, released its report documenting over 500 allegations of harassment and other egregious behavior and revealed one in ten FDIC employees reported some form of misconduct. However, Cleary Gottlieb was precluded from directly investigating claims of misconduct to hold perpetrators accountable, instead focusing on policies and shortfalls giving rise to the culture.

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