This probably wasn't what President Roosevelt had in mind when he signed the Banking Act of 1933 into law, creating the Federal Deposit Insurance Corporation.
The FDIC was created in the middle of the Great Depression to regulate banks and help ensure consumer confidence at a time when more than one-third of banks failed and bank runs were common.
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Now, the FDIC insures deposits in member banks up to $250,000.
But there is more going on beneath the surface of the FDIC, as resignations have risen amid a culture of misogyny and sexual harassment, according to a report from the Wall Street Journal.
The Journal detailed the experiences of multiple women who experienced sexual harassment at the hands of male superiors, some of whom went on to work for the agency for years even after complaints were made to higher ups.
In addition to outright harassment, — a male supervisor is accused of asking the colleague of a female trainee "about her sex life, including asking who at the agency was sleeping with her" — FDIC supervisors excluded women by organizing golf outings and trips to the strip club for employees.
The FDIC itself is an exclusive club to get into, as the agency hires fewer than 200 trainees per year, according to the Journal.
It costs nearly $400,000 to train a commissioned officer over a four-year period, and since the agency also experiences unsustainable churn with less than half (48%) of the class of 2017 still working at the FDIC, its problems retaining talent amid a toxic work environment are costly.
After 2020, the agency saw resignations of "Financial Institution Specialists" more than double to 54 in 2021 from 24. Resignations rose again in 2022 to 62.
At the same time, "the FDIC may lose valuable knowledge and leadership skill sets upon the departure of experienced examiners, managers, and executives." the agency said in a February report, lamenting that 21% of its workforce was eligible to retire in 2022, with that number expected to climb to 38% by 2027.
"The departure of FIS personnel impacts FDIC succession planning and management," the FDIC said.
Thankfully, the FDIC is a unique government agency in that it isn't funded with public money. FDIC members pay insurance dues that fund the majority of the agency, so taxpayers aren't paying for the agency's misdeeds.
In response to the Journal's article on Monday, the FDIC announced that it is hiring an "independent firm" to conduct a "top-to-bottom assessment" of its workplace culture, with Chairman Martin Gruenberg stating that harassment and discrimination are "completely unacceptable" at the agency.
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