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WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) today announced the conclusion of the work of Independent Monitor Carrie H. Cohen of Morrison & Foerster LLP, who was retained by the FDIC Board of Directors to independently monitor and audit the agency’s implementation of workplace culture reforms.
The monitorship was established following recommendations from an independent review by Cleary Gottlieb Steen & Hamilton LLP of the FDIC’s workplace culture. During the engagement, the monitor independently assessed the FDIC’s efforts and provided feedback along the way.
Since the monitorship began, the FDIC has implemented substantial reforms to address the issues revealed in the 2023 Wall Street Journal articles and the Cleary Gottlieb Report.
Today, allegations of misconduct are rigorously investigated, and employees who commit misconduct are held accountable. The agency’s leadership has undergone significant transition, with a complete turnover of its Board of Directors, widespread changes among senior agency leaders, and new Directors leading most Divisions, Offices, and Regional Offices. FDIC leaders are expected to lead by example, treat employees with respect and professionalism, and promote a culture where employees are encouraged to share ideas, consider different points of view, respect and listen to one another, and work collaboratively.
The FDIC has also fully implemented all recommendations made by the Office of Inspector General (OIG) in its 2024 audit reports related to the FDIC’s workplace culture, and the FDIC OIG has formally closed all of its recommendations.
“Two and a half years ago, the Cleary Gottlieb report found that ‘for far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct’ and that ‘a patriarchal, insular, and risk-averse culture has contributed’ to such conditions. Since then, we have taken dramatic steps to transform the agency’s culture, and the conclusion of the independent monitorship is an important milestone in these efforts,” Chairman Travis Hill said. “Carrie Cohen and her team played a pivotal role in providing oversight and engaging with the workforce as we implemented these reforms. The FDIC remains committed to sustaining this progress and maintaining a workplace where employees are treated with professionalism and respect, where employees are proud to work, and where potential recruits want to work.”
“As a direct result of the Monitorship Team’s independent assessment of the FDIC’s remediation design and engagement with the agency at all levels, the FDIC now has the remediation elements in place that are critical to lasting culture transformation,” said Carrie H. Cohen. “As the monitorship concludes, responsibility for carrying these reforms forward rests with the FDIC. The agency is well positioned to carry out this work with a strong foundation and demonstrated commitment to the work ahead. It has been an honor to serve the FDIC and I am grateful to the Board, agency leadership, and especially the FDIC staff for their engagement throughout the monitorship.”
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