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HR at the US FDIC Contributed to Culture Problems

HR at the US FDIC Contributed to Culture Problems

by Starling Insights

Starling Insights Editorial Board

Feb 12, 2024

Observations

As reported by the Wall Street Journal's Rebecca Ballhaus and Joe Palazzolo, leaders in the two departments at the US Federal Deposit Insurance Corporation (FDIC) responsible for addressing harassment complaints have faced several misconduct allegations of their own over the past few years.

Since 2018, at least 12 managers in HR and the Office of Minority and Women Inclusion have faced accusations of harassment and bullying from their employees. Current and former FDIC employees told the WSJ that the turmoil within these departments contributed to the widely reported cultural problems that have plagued the agency.

In November, a bombshell article written by Ballhaus portrayed a sexist culture at the FDIC, rife with partying, harassment, and discrimination. Further reports alleged that Chairman Martin Gruenberg ignored such behavior and contributed to the "toxic atmosphere" by bullying subordinates.

Later this week, Starling Insights will publish a Deeper Dive report entitled "Physician, Heal Thyself," which will discuss the global push to hold regulators accountable for their organizational culture and the outcomes such culture may drive. Regulators, that is, are increasingly being held to a standard regarding culture and conduct that they have emphasized in recent years among the firms they oversee. This Deeper Dive will only be available here on Starling Insights.

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