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Has Scandal Paralyzed the US FDIC?

Has Scandal Paralyzed the US FDIC?

by Starling Insights

Starling Insights Editorial Board

Dec 05, 2023

Observations

Personal Liability & Accountability The Era of Accountability Speaking Up & Speaking Out US FDIC USA Regulatory Trends

Last month, the Wall Street Journal published an article portraying a sexist culture at the US Federal Deposit Insurance Corporation (FDIC), rife with partying, harassment, and discrimination. Now, the agency must fulfill its mandate while grappling with employee turmoil and external scrutiny.

The FDIC had initially hired law firm BakerHostetler to conduct an independent investigation into these allegations. However, the agency later formed a special committee to oversee the inquiry — headed by board members Jonathan McKernan and Michael Hsu — purposefully restricting other board member’s ability to influence the investigation.

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