Key facts
- The FDIC has disciplined eight employees for sexual harassment since January 2025.
- Disciplinary actions include four firings, two suspensions, and two resignations before dismissal.
- A senior executive resigned before being fired after facing credible sexual harassment allegations.
- The FDIC created an Office of Professional Conduct in June 2024 following a scandal.
- The agency has implemented new policies and training to address misconduct and improve workplace culture.
The U.S. Federal Deposit Insurance Corporation (FDIC) has disciplined eight employees for sexual harassment since January 2025, with actions including four firings, two suspensions, and two resignations prior to dismissal. These measures follow a significant scandal that exposed widespread misconduct and led to reforms within the agency.
According to agency officials and records obtained by Reuters, the disciplinary actions indicate a shift in how the FDIC handles such allegations, breaking from a past where no employees were reportedly fired for harassment between 2015 and 2023. The FDIC's Office of Professional Conduct, established in June 2024 as a result of the scandal, has been central to these recent actions.
A senior executive resigned before termination after facing credible allegations, and another staff member was suspended for 60 days. An eighth employee was fired for sexual harassment after the list of actions was released to Reuters. The agency stated its commitment to accountability and an improved workplace culture, highlighting leadership changes and revamped processes for investigating misconduct.
Experts, like Jennifer Griffith, a professor of organizational behavior, suggest that while these actions are positive steps, meaningful cultural change requires sustained evidence that misconduct is no longer tolerated. The scandal, which came to light in 2023, prompted an investigative report by Cleary Gottlieb that detailed accounts of sexual harassment, discrimination, and bullying at all levels of the agency.
Former FDIC Chair Martin Gruenberg stepped down amid congressional pressure and was succeeded in January 2025 by Travis Hill, who pledged to continue reform efforts during congressional testimony in October 2025. The FDIC has also implemented new policies on retaliation, workplace relationships, and anti-harassment training.