The Federal Deposit Insurance Corporation (FDIC) is facing scrutiny following a report published Monday alleging a “party culture” within the agency, according to The Wall Street Journal.
The report highlighted various alleged incidents of inappropriate behavior among employees and supervisors. The reported incidents include a San Francisco-based FDIC supervisor allegedly inviting employees to a strip club and a Denver supervisor allegedly engaging in sexual relations with an employee, bragging about it, and encouraging alcohol consumption during work hours, according to the WSJ.
Additionally, senior managers allegedly sent unsolicited explicit photos to female employees, according to the WSJ. The report also alleged that the officials used the company’s 11-story hotel in Arlington, Virginia, as a hub for excessive partying. (RELATED: ‘We’ve Got Some Cleanup To Do’: Former FDIC Chair Says There Will ‘Probably’ Be More Bank Failures)
Strip clubs, lewd photos: FDIC employees recount a sexualized, boys’ club environment at the bank regulator, saying it drove women to quit https://t.co/WQi4JjS7lY https://t.co/WQi4JjS7lY
— The Wall Street Journal (@WSJ) November 13, 2023
“It was just an accepted part of the culture,” Lauren Lemmer, a former examiner-in-training who quit her job in 2013, told the WSJ.
Criticism has also been directed at the agency’s handling of the recent failures of major financial institutions, including the Silicon Valley Bank. FDIC Vice Chairman Travis Hill pointed to the agency’s slow response in setting up a platform for potential bidders to review SVB’s finances following its closure, Fox News Digital reported.
“Harassment in any form is contrary to the FDIC’s values and our deep commitment to fostering a diverse and inclusive workplace. We have various training, reporting, and oversight programs that endeavor to create a safe and equitable environment where all employees can feel valued and respected,” an FDIC spokesman told Fox Digital in response to the allegations.
“When we identify misconduct, we investigate and take appropriate action. In addition, we continually seek employee feedback and input on ways to promote and improve the culture through our Workplace Excellence Councils, Employee Resource Groups, and other means. To ensure we are living up to our values, we will continue to conduct periodic reviews of our programs and policies,” the spokesman continued.