FDIC probe finds widespread sexual misconduct: sources

An independent report has revealed significant sexual harassment and misconduct within the Federal Deposit Insurance Corp. (FDIC), with over 500 individuals, mostly current employees, reporting such issues. The investigation, conducted by Cleary Gottlieb, also found prevalent retaliation against those who reported supervisor misconduct, with little action taken against the retaliation.

FDIC Chair Martin Gruenberg acknowledged the findings as "sobering" and accepted responsibility for the agency's failures, apologizing for the reported mistreatment. The probe, initiated after reports by the Wall Street Journal, could intensify calls for Gruenberg's resignation, potentially impacting the Biden administration's financial regulatory agenda.